Question

The purchasing manager for a chain of grocery stores is interested in​ customer's preference for​ non-alcoholic beverages. She wondered if there was a relationship between the​ customer's beverage preference and the​ customer's income class. She randomly sampled 500 customers and asked their​ non-alcoholic beverage preference​ (soft drinks, energy​ drinks, fruit​ juices, vitamin​ water, or​ other) and what their income class is​ (lower class, lower middle​ class, middle​ class, upper middle​ class, upper​ class). Assuming all conditions are​ satisfied, which of the following tests should the manager use to test her​ hypothesis?

A. The chi-square test of homogeneity.
B. The goodness-of-fit chi-square test.
C. The chi-square test of independence.
D. The two-sample z-test for proportions.

Answer 1

Option C

Explanation:

The chi-square test of independence is used to determined whether there is a relationship between two categorical variable which in this study is to establish if there is a relationship between a customer's beverage preference and his/her income class (these are categorical variables).

The null hypothesis would be that no relationship exists between the variables while the alternative would be that there is a relationship between the two variables.