A social organization was interested in determining if there were various demogr
ID: 3262544 • Letter: A
Question
A social organization was interested in determining if there were various demographic characteristics that might be related to people’s propensity to contribute to charities. The organization was particularly interested in determining if individuals forty years of age or over were more likely to contribute larger amounts than individuals under forty. The average con- tribution in the population was $1,500, and this figure was used to form two groups based on a median-split. The following table presents a two-way classification of the number of individuals by contributions and age. Does the amount of personal contributions depend on age? Generate a table for a report that communicates the relevant information
contributions 39 or less 40 or more total
less than or equal to 1,500 79 50 129
More than $1,500 11 80 71
Total 90 110 200
Explanation / Answer
Ans:
H0:amount of personal contributions is independent of age
H1:amount of personal contributions is dependent on age.
Expected count=row sum*column sum/overall sum
Crititcal chi square score(0.05 significance level and df=1)=3.84
As,calculated chi square score=38.72>3.84,We reject null hypothesis i.e. amount of personal contributions is independent of age.
Hence, it concludes that amount of personal contributions is dependent on age.
Observed(O) <=39 >=40 Total <=1500 79 50 129 >1500 11 60 71 Total 90 110 200 Expected(E) <=39 >=40 Total <=1500 58.05 70.95 129 >1500 31.95 39.05 71 Total 90 110 200 Chi square=(O-E)^2/E 7.56 6.19 13.74 11.24 Total chi square score=7.56+6.19+13.74+11.24 =38.72Related Questions
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