Question

City planners are evaluating three proposed alternatives for relieving the growing traffic congestion on a north-south highway in a booming city. The proposed alternatives are: (1) designate high-occupancy vehicle (HOV) lanes on the existing highway, (2) construct a new, parallel highway, and (3) construct a light (passenger) rail system.
In an analysis of the three proposals, a citizen group has raised the question of whether preferences for the three alternatives differ among residents near the highway and non-residents. A test of independence will address this question, with the hypotheses being:
H0: Proposal preference isindependent of the residency status of the individual
Ha: Proposal preference is notindependent of the residency status of the individual
A simple random sample of 500 individuals has been selected. The crosstabulation of the residency statuses and proposal preferences of the individuals sampled is shown below.
Residency StatusHOV LaneNew HighwayLight Rail
Nearby resident1104570
Distant resident1407560

Conduct a test of independence using = .05 to address the question of whether residency status is independent of the proposal preference.

Answer

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