Saul sold goods to Bruce, warranting that the goods were of a specified quality. The goods were not of the quality warranted, however, and Saul knew this at the time of the sale. Bruce drew and delivered a check payable to Saul and drawn on Third National Bank in the amount of the purchase price. Bruce subsequently discovered the goods were faulty and stopped payment on the check. Third National refused to pay Saul on the check.

a. What are the arguments that Saul can recover (1) from Bruce and (2) from Third National?

b. What are the arguments that (1) Bruce should prevail? and (2) Third National should prevail?

c. Who should prevail? Why?

Prenatal Care An obstetrician wants to learn whether the amount of prenatal care and the wantedness of the pregnancy are associated. He randomly selects 939 women who had recently given birth and asks them to disclose whether their pregnancy was intended, unintended, or mistimed. In addition, they were to disclose when they started receiving prenatal care, if ever. The results of the survey are as follows:

(a) Compute the expected values of each cell under the assumption of independence.

(b) Verify that the requirements for performing a chi-square test of independence are satisfied.

(c) Compute the chi-square test statistic.

(d) Test whether prenatal care and the wantedness of pregnancy are independent at the  level of significance.

(e) Compare the observed frequencies with the expected frequencies. Which cell contributed most to the test statistic? Was the expected frequency greater than or less than the observed frequency? What does this information tell you?

(f) Construct a conditional distribution by wantedness of the pregnancy and draw a bar graph. Does this evidence support your conclusion in part (d)?