Question

A gasoline distributor wonders whether an individual's income level influences the grade of gasoline purchased. The following is a contingency table from a random sample of 300 individuals.
Personal Type of Gasoline
Income Regular Premium Extra Premium
Less than $50,000 80 30 30
$50,000 or More 70 40 50

Using a= .05, appropriate decision is ______________.
a) reject the null hypothesis and conclude the two variables are not independent
b) reject the null hypothesis and conclude the two variables are independent
c) do not reject the null hypothesis and conclude the two variables are not independent
d) do not reject the null hypothesis and conclude the two variables are independent
e) do nothing

Answer

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