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A. A local politician was interested in determining whether income level affects

ID: 3229533 • Letter: A

Question

A. A local politician was interested in determining whether income level affects opinion regarding the government's bailout bill for easing the 2008 financial crisis on Wall Street. He surveyed a sample of his constituents and got the following results. The correct null hypothesis to be tested is

Opinion

Income Level

Favor

Oppose

>$200,000

38

29

$50,000 to $200,000

30

42

<$50,000

32

59

I. There is no relationship between income level and opinion.

II. There is a relationship between income level and opinion.

III. Opinion and income level are independent.

A) III only

B) II only

C) Both I and III

D) I only

E) Both II and III

B. A local politician was interested in determining whether income level affects opinion regarding the government's bailout bill for easing the 2008 financial crisis on Wall Street. He surveyed a sample of his constituents and got the following results. The expected number of favor opinion for $50,000 to $200,000 income level is:

Opinion

Income Level

Favor

Oppose

>$200,000

38

29

$50,000 to $200,000

30

42

<$50,000

32

59

45.382

40.696

31.304

39.565

29.130

Opinion

Income Level

Favor

Oppose

>$200,000

38

29

$50,000 to $200,000

30

42

<$50,000

32

59

Explanation / Answer

A)C) Both I and III

B) applying chi square analysis on above:

expected number of favor opinion for $50,000 to $200,000 income level is =31.304

Observed O favor oppose Total >200000 38 29 67 50000-200000 30 42 72 <50000 32 59 91 Total 100 130 230 Expected E=rowtotal*column total/grand total favor oppose Total >200000 29.130 37.870 67 50000-200000 31.304 40.696 72 <50000 39.565 51.435 91 Total 100 130 230 chi square =(O-E)^2/E favor oppose Total >200000 2.701 2.0774 4.778 50000-200000 0.054 0.042 0.096 <50000 1.447 1.113 2.559 Total 4.201 3.232 7.4334
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