Chapter 12.2, Problem 26E

The paper “Credit Card Misuse, Money Attitudes, and Compulsive Buying Behavior: Comparison of Internal and External Locus of Control Consumers” (College Student Journal [2009]: 268–275) describes a study that surveyed a sample of college students at two midwestern public universities. Based on the survey responses, students were classified into two “locus of control” groups (internal and external) based on the extent to which they believe that they control what happens to them. Those in the internal locus of control group believe that they are usually in control of what happens to them, where-as those in the external locus of control group believe that it is usually factors outside their control that determines what happens to them. Each student was also classified according to a measure of compulsive buying.

The resulting data are summarized in the accompanying table. Can the researchers conclude that there is an association between locus of control and compulsive buying behavior? Carry out a X² test using α = 0.01. Assume it is reasonable to regard the sample as representative of college students at midwestern public universities.