The Billing Department of a National Cable Service Company Is

Multiple Choice

The billing department of a national cable service company is conducting a study of how customers pay their monthly cable bills. The cable company accepts payment in one of four ways: in person at a local office, by mail, by credit card, or by electronic funds transfer from a bank account. The cable company randomly sampled 400 customers to determine if there is a relationship between the customer's age and the payment method used. The following sample results were obtained: Based on the sample data, can the cable company conclude that there is a relationship between the age of the customer and the payment method used? Conduct the appropriate test at the alpha= 0.01 level of significance.

A) Because x2 = 42.2412 > 21.666, do not reject the null hypothesis. Based on the sample data conclude that age and type of payment are independent.
B) Because x2 = 42.2412 > 21.666, reject the null hypothesis. Based on the sample data conclude that age and type of payment are not independent
C) Because x2 = 50.3115 > 21.666, do not reject the null hypothesis. Based on the sample data conclude that age and type of payment are independent.
D) Because x2 = 50.3115 > 21.666, reject the null hypothesis. Based on the sample data conclude that age and type of payment are not independent.