A marketing agency would like to determine if there is a relationship between union membership and type of vehicle owned (domestic or foreign brand). The goal is to develop targeted advertising campaigns for particular vehicle brands likely to appeal to specific groups of customers. A survey of 500 potential customers revealed the following results.

a. Specify the competing hypotheses to determine whether vehicle brand (domestic, foreign) is associated with union membership.
b. Use the critical value approach to conduct the test at the 10% significance level. What is your conclusion?
c. Is the conclusion reached in part (b) sensitive to the choice of significance level?

Transcribed Image Text:

Not Union Union Member Member Domestic brand Foreign brand 133 67 147 153