The issue of whether to allow drilling for oil in the Santa Barbara Channel has

Question

The issue of whether to allow drilling for oil in the Santa Barbara Channel has been vigorously debated. Elizabeth Murry, a television reporter, conducted an opinion poll of residents who live along the coast near the debated drilling site. She asked each individual whether the state should intervene in the matter, and how much their yearly income was. The results are shown in Table 9-4. Test the null hypothesis that the variables "income" and "attitude toward state intervention" are independent in this community. Use alpha = 0.05.

Explanation / Answer

Doing an Expected Value Chart,          
          

  
Using chi^2 = Sum[(O - E)^2/E],          
          
chi^2 =    21.01508465      
          
With df = (a - 1)(b - 1), where a and b are the number of categories of each variable,          
          
a =    3      
b =    3      
          
df =    4      
          
Thus, the critical value is          
          
significance level =    0.05      
          
chi^2(critical) =    9.487729037      
          
Also, the p value is          
          
P =    0.000314496      
          
As chi^2 > 9.4877, and P < 0.05, we   REJECT THE NULL HYPOTHESIS.      
          
Thus, there is significant evidence that income and attitude toward state intervention are not independent in this community. [CONCLUSION]

85 51 34 117.5 70.5 47 47.5 28.5 19

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