Question

A market researcher for an automobile company suspects differences in preferred color between male and female buyers. Advertisements targeted to different groups should take such differences into account, if they exist. The researcher examines the most recent sales information of a particular car that comes in three colors. Use Table 3.

	Gender of Automobile Buyer
Color	Male	Female
Silver	487	279
Black	550	288
Red	481	373

a.

Choose the competing hypotheses to determine whether color preference depends on gender.

	H0: Color preference is independent of gender; HA: Color preference is dependent on gender.
	H0: Color preference is dependent on gender; HA: Color preference is independent of gender.

b.	Find the critical value at the 10.0% significance level. (Round your answer to 2 decimal places.)

Critical value

c.	Calculate the value of the test statistic. (Round the intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.)

Test statistic

d-1.

What is the conclusion?

	Do not reject H0; there is not enough evidence to support the claim that color preference is not independent.
	Reject H0; there is not enough evidence to support the claim that color preference is not independent.
	Do not reject H0; there is enough evidence to support the claim that color preference is not independent.
	Reject H0; there is enough evidence to support the claim that color preference is not independent.

d-2.

Does your conclusion suggest that the company should target advertisements differently for males versus females?

	No
	Yes

Answer 1

For bit a the answer is option 1.