Given a shaky economy and high heating costs, more and more households are struggling to pay utility bills (The Wall Street Journal, February, 14, 2008). Particularly hard hit are households with homes heated with propane or heating oil. Many of these households are spending twice as much to stay warm this winter compared to those who heat with natural gas or electricity. A representative sample of 500 households was taken to investigate if the type of heating influences whether or not a household is delinquent in paying its utility bill. The following table reports the results.

At the 5% significance level, test whether the type of heating influences a household’s delinquency in payment. Interpret yourresults.

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Type of Heating Heating Delinquent Natural in Payment? Gas Electricity Oil Propane Yes 50 20 15 10 3 No 240 130 20 15