A consultant to all kinds of retailers suggests that they have plenty of baskets available for customers. He bases his suggestion on data collected by watching videos from hidden cameras. Suppose that out of 200 customers, 80 picked up a basket when they entered the store. Among those who picked up baskets 60 persons made purchases while only 41 of those without baskets made a purchase.
(a) Conduct a x2 test of independence between purchasing and the decision to pick up a basket. Use a = .05.
(b) The consultant may be confusing association with cause and effect. For instance, do you think the decision to pick up a basket has anything to do with the intent to purchase when a person enters the store? Comment.