You should remove other color class name, and also your check the click event:
$('input[type=radio][name=RadioGroup1]').click(function(){
if (this.value == 'Y') {
$('.test').removeClass("classRed").addClass("classGreen");
}
else if (this.value == 'N') {
$('.test').removeClass("classGreen").addClass("classRed");
}
});
and also I don't know but this worked for CSS:
<style type="text/css">
.test { font-size:24px }
.classRed { color: red }
.classGreen { color: green }
</style>
:)