A retailer of smart phones wants to understand whether or not the phone preference of customers is independent of gender. She surveys a sample of 600 customers and creates the following contingency table:
Android Apple Other Total
Men 115 80 135 330
Women 75 100 95 270
Total 190 185 225 600
a) (2 pts) Complete the following table of expected frequencies:
Android Apple Other
Men 104.50 101.75
Women 85.50 101.25
b) Give the null and alternative hypotheses for the contingency analysis:
c) The value of the test statistic is 11.717 with a p-value of 0.003. At a 5% significance level, do you reject the null hypothesis? Explain why or why not using either the critical statistic method or the p-value method (your choice).
d) What is the business implication of your conclusion in step c above?