> Moving to another ston wa save this response Question 5 In the following table

Question

> Moving to another ston wa save this response Question 5 In the following table, individuals are cross-classiied by their age group and income lve Using the p-value approach and a 0 05, the decision and conclusion are: Income Age 21-35 36-50 51-65 Low 120 150 160 Medium 100 160 180 75 100 160 O Do not rejeat the nul bypothesis, age and income are dependent O Do nat reject the null hypothesis, age and income are independent O Reject the nuil hypothesis, age and income are dependon ORoject the nl hypothesis, age and income are independent

Explanation / Answer

Ans:

H0:Age and income are independent.

Ha:Age and income are dependent.

Test statistic:

calculated chi square score=10.840

df=(3-1)*(3-1)=4

p-value=CHIDIST(10.840,4)=0.0284

Significance level=0.05

As,p-value<0.05,we Reject null hypothesis.

There is sufficient evidence to conlcude that age and income are dependent.

Observed(O) Age low medium high Total 21-35 120 100 75 295 36-50 150 160 100 410 51-65 160 180 160 500 Total 430 440 335 1205 Expected(E) Age low medium high Total 21-35 105.27 107.72 82.01 295 36-50 146.31 149.71 113.98 410 51-65 178.42 182.57 139.00 500 Total 430 440 335 1205 (O-E)^2/E Age low medium high 21-35 2.061 0.553 0.600 36-50 0.093 0.707 1.715 51-65 1.902 0.036 3.171 Total chi square score=10.840

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