Researchers are testing whether age affects people’s income. They recruit young

Question

Researchers are testing whether age affects people’s income. They recruit young and old people and place them in categories of high versus low-income. The researchers then look at the frequencies (number of people) in each cell, to test if older people make more money compared to young people. They obtain the following results:

Young

Old

Low Income

15

10

High Income

16

14

The following study should be analyzed with what statistical procedure?

One-Way ANOVA

Regression

Chi-Square

Factorial ANOVA

Young

Old

Low Income

15

10

High Income

16

14

Explanation / Answer

The answer is chi-square. This is because categorical varies are being utilised in a 2 by 2 contingency table. For this type of data, chi-square is the most appropriate.

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