EXAMPLE 26 Determining independence using the alternative method

We return to the direct mail marketing data from Example 19, reproduced here in Table 23. Use the alternative method for determining independence to determine whether the following two events are independent:

Table 5.56: Table 23 Credit card status and marketing response
Response Credit card on file?
No Yes Total
Did not respond 161 79 240
Did respond 17 31 48
Total 178 110 288
Table 5.56: Source: Daniel Larose and Chantal Larose, Data Mining and Predictive Analytics (Wiley Interscience, 2015).

Solution

Using Table 23, we may find the following probabilities:

Because , we have ; therefore, and are dependent.

NOW YOU CAN DO

Exercises 79–84.