In the Baldwin Computer Sales case, visited previously in Chapters 3 and 5, one of the areas of concern regarding the student purchase program was whether defaulting on the computer payments is independent of the university attended by the student. Using the BALDWIN data file, apply the appropriate chi-square test from this chapter to determine whether these variables could be independent. Use a level of significance of your choice in reaching a conclusion, and identify and interpret the p-value for the test. What, if any, recommendations would you make to Baldwin management on the basis of this test?
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