Visa Card USA studied how frequently consumers of various age
Visa Card USA studied how frequently consumers of various age groups use plastic cards (debit and credit cards) when making purchases (Associated Press, January 16, 2006).
Sample data for 300 customers shows the use of plastic cards by four age groups.
a. Test for the independence between method of payment and age group. What is the p-value? Using α = .05, what is your conclusion?
b. If method of payment and age group are not independent, what observation can you make about how different age groups use plastic to make purchases?
c. What implications does this study have for companies such as Visa, MasterCard, and Discover?
Membership TRY NOW
  • Access to 800,000+ Textbook Solutions
  • Ask any question from 24/7 available
    Tutors
  • Live Video Consultation with Tutors
  • 50,000+ Answers by Tutors
OR
Relevant Tutors available to help