An economist wants to determine whether the region a Region 73 96 135 following

Question

An economist wants to determine whether the region a Region 73 96 135 following data. Complete parts (a) through (e) below 152 142 (a) Does the sample evidenoe suggest that level of education and region are independent at the a 0.05 level of significance? O A. Reject Ho. There is not suficient evidenoe that education and region are associated O C. Rejoct Ho. There is sufficient evidence that education and region are associated. OB. o. Fal to reject H0. There is sutoont evidence that ed cason and region are assoated. Fal to rejedno. There is not sufcent evidene tat education and regionane associated.

Explanation / Answer

applying chi square test on above:

from above test statistic =28.7962

degree of freedom =(row-1)*(colummn-1)=(4-1)*(4-1)=9

for 9 degree of freedom critical value =16.9190 and for abvoe test statistc p value =0.0007

as value is less than 0.05 lvel and test statistic is higher than critical valeu

option C is correct

Observed O not a HS grad HS grad some college Bachelor's degree Total East 73 212 62 135 482 North 96 119 82 116 413 South 75 152 68 116 411 West 71 142 66 114 393 Total 315 625 278 481 1699 Expected E=rowtotal*column total/grand total not a HS grad HS grad some college Bachelor's degree Total East 89.364 177.310 78.868 136.458 482 North 76.572 151.928 67.577 116.923 413 South 76.201 151.192 67.250 116.357 411 West 72.863 144.570 64.305 111.261 393 Total 315 625 278 481 1699 chi square =(O-E)^2/E not a HS grad HS grad some college Bachelor's degree Total East 2.9966 6.7869 3.6075 0.0156 13.407 North 4.9296 7.1365 3.0781 0.0073 15.151 South 0.0189 0.0043 0.0084 0.0011 0.033 West 0.0477 0.0457 0.0447 0.0674 0.205 Total 7.993 13.973 6.739 0.091 28.7962

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