Question

The market research group of a manufacturer of computing equipment believes that the piece of equipment people purchase is related to the highest college degree that they earned. To determine if this belief is true, the firm surveyed a sample of 600 buyers with different degrees to determine whether they purchased a desktop, laptop, or tablet computer They organized the data along two categorical variables: first, type of equipment - desktop, laptop, or tablet; second, type of degree - undergraduate or graduate. The results are given in the following table. Highest Degree Undergraduate Graduate Desktop 75 120 Laptop 50 85 Tablet 175 95 The critical value of chi square obtained from the table for a 5% level of significance is A 12.592 B. 5.991 C.7.378 D. 10.597

Answer 1

Highest Degree has 2 levels: Undergraduate and Graduate.

Purchasing items has 3 levels: Desktop, Laptop and Tablet.

So the degrees of freedom for the chi-square distribution = (2 - 1) * (3 - 1) = 2

for $\alpha$ = 0.05, from the table the value of, $\chi_{0.05, 2}^2$ = 5.991

So Option B is correct.

** If the answer does not match please comment.