Analysis Question

Question

A phone company determined that a higher income indicates that a customer has a more expensive calling plan. What does the analysis show?

Answer 1

Hello, Katrina,

I'm not sure the analysis allows us to conclude much, based on a one sentence summary. We don't know the purpose of the survey, the group that was questioned (e.g., was it a random sample or targeted only at higher-income people), nor the meaning of "higher income" or "more expensive." Are the services different between the two?

My tongue in cheek responses might be:

Higher income people are:

1. . less careful about spending
2. don't care what is spent on a relatively minor item
3. don't carefully compare plan options, or
4. require more services, which are presumably included in a more expensive plan