Question

According to a British Study, the income distribution of adult Internet users closely mirrors that of credit card applicants.

The income distribution for credit card applicants is shown below.

Income ($1000) Under 30, 30- under 50, 50-under 70, 70 or more.

Percentage 28, 33, 21, 18

A random sample of 109 adult Internet users yielded the following income distribution this year.

Income ($1000) Under 30, 30- under 50, 50-under 70, 70 or more

Frequency 25, 29, 26, 29

a) At alpha = 0.01, does the data support the claim by the market research?

Use the Chi-square Goodness of Fit Test.

b) Conclusions at the 10% level of significance?

Answer 1

a)

Hence,the data supports the claim by the market research at 1% level of significance.

b)

Now, Level of significance = 0.10

Hence,the data does not supports the claim by the market research at 10% level of significance.