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.
Correct Answer:

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Correct Answer:
Verified
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