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8. Interpretation: Test of Independence Consider Charlotte\'s study of of fraud/

ID: 2909158 • Letter: 8

Question

8. Interpretation: Test of Independence Consider Charlotte's study of of fraud/identity theft and gender (see Problem 6). She computed sample X2 = 10.2. (a) How many degrees of freedom are used? Recall that there were 5 soOU of fraud/identity theft and, of course, 2 genders. Approximate the Pal and conclude the test at the 5% level of significance. Would it seem the gender and source of fraud/identity theft are independent? (b) From this study, can Charlotte identify which source of fraud/idemi theft is dependent with respect to gender? Explain.

Explanation / Answer

The degrees of freedom is given by The degrees of freedom associated with a table with r rows and c columns is: (rc-1)-(r-1)-(c-1)=(r-1)(c-1) since the column totals and row totals reduce the number of degrees of freedom. Since there are 5 sources of fruad and 2 genders th degrees of freedom is given by (5-1)(2-1)=4 degrees of freedom HYPOTHESIS TO TESTED Ho: source of fraud and gender are not dependent. H1:source of fraud and gender are dependent. To calculate the p value we use the r code pchisq(10.2, df=4, lower.tail=FALSE)=0.0371 The p value obatined is less than 5% significant value Therefore we do have enough evidence to reject the null hypothesis. Therefore we conclude source of fraud and gender are dependent. b) It is not possible to identify which source of fraud is dependent with respect to gender in chisquare because it is only the test of independence

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