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?

  • CreatedSeptember 20, 2015
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