Reference no: EM131684455

Question: The game show Deal or No Deal involves a series of opportunities for the contestant to either accept an amount of money from the show's banker or to decline it and open a specific number of briefcases in the hope of exposing and, thereby eliminating, low amounts of money from the game, which would lead the banker to increase the amount of the next offer. Suppose that 700 people aged 21 years and older were selected at random. Each of them watched an episode of the show until exactly four briefcases were left unopened. The money amounts in these four briefcases were $750, $5000, $50,000, and $400,000, respectively. The banker's offer to the contestant was $81,600 if the contestant would stop the game and accept the offer. If the contestant were to decline the offer, he or she would choose one briefcase out of these four to open, and then there would be a new offer. All 700 persons were asked whether they would accept the offer (Deal) for $81,600 or turn it down (No Deal), as well as their ages. The responses of these 700 persons are listed in the following table.

Test at the 5% significance level whether the decision to accept or not to accept the offer (Deal or No Deal) and age group are dependent.