City planners are evaluating three proposed alternatives for relieving the growing traffic
congestion on a north-south highway in a booming city. The proposed alternatives are:
(1) designate high-occupancy vehicle (HOV) lanes on the existing highway, (2)
construct a new, parallel highway, and (3) construct a light (passenger) rail system.
In an analysis of the three proposals, a citizen group has raised the question of whether
preferences for the three alternatives differ among residents near the highway and
non-residents. A test of independence will address this question, with the hypotheses
being:
H0: Proposal preference is independent of the residency status of the individual
Ha: Proposal preference is not independent of the residency status of the individual
A simple random sample of 500 individuals has been selected. A crosstabulation of the
residency statuses and proposal preferences of the individuals sampled is shown below.
Conduct a test of independence using
= .05 to address the question of whether
residency status is independent of the proposal preference.