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In: Statistics and Probability

(Need Ans ASAP PLEASE) You have been hired to test whether the demand for a product...

(Need Ans ASAP PLEASE) You have been hired to test whether the demand for a product that your client produces varies between two demographic markets – the Urban and Rural markets.

As such, in each market, you run a short survey that gauges customers demand for your product and assigns them to one of three categories – (i) High (ii) Medium or (iii) Low.

You survey 70 people in the “Urban” market and find that their demand falls into the following “buckets”

High                       32

Medium               20

Low                        18

You survey 30 people in the “Rural” market time. Their demand for the product its reflected below.

High                       8

Medium               10

Low                       12

The Null hypothesis that you are asked to test is that "the demand for the product is INDEPENDENT of the whether the market is Urban or Rural.”

Using the critical values for the 5% and 1% levels of the Chi-Square Distribution from your text, which of the following statements is true

We cannot reject the null hypothesis at the 5% or 1% level

We can reject the null hypothesis at both the 5% and the 1% levels.

We can reject the null hypothesis at the 5% level.

We can reject the null hypothesis at the 1% level.

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