Question: Aurica Sabou has been working on a plan for new
Aurica Sabou has been working on a plan for new store locations as part of her regional expansion. In the city proposed for expansion there are three possible locations: north, east, and west. From past experience she knows that the three major profit centers in her stores are tools, lumber, and paint. In selecting a location, the demand patterns in the different parts of the city were important. She commissioned a sampling study of the city that resulted in a two-way table for the variables residential location and product purchased. This table was prepared by the market research department using data obtained from the random sample of households in the three major residential areas of the city. Each residential area had a separate phone number prefix, and the last four digits were chosen using a computer random number generator. Is there a difference in the demand patterns for the three major items among the different areas of the city?
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