You want to examine whether income level is associated with the subscription of

Question

You want to examine whether income level is associated with the subscription of newspapers in Los Angeles. You choose 1,000 households who subscribe to either LA Times or LA Daily. Then, you ask their newspaper subscription and income level. The table below shows the survey result.

Develop the null and alternative hypotheses to test the association between newspaper subscription and income level.

You want to examine whether income level is associated with the subscription of newspapers in Los Angeles. You choose 1,000 households who subscribe to either LA Times or LA Daily. Then, you ask their newspaper subscription and income level. The table below shows the survey result.

Low income High income Row sum LA Times 100 300 400 LA Daily 500 100 600 Column sum 600 400 1,000

Develop the null and alternative hypotheses to test the association between newspaper subscription and income level.

Explanation / Answer

Here, we have to test null hypotheis

H0:There is no assocation between newspaper subscription and income level

& an alternative hypothesis

H1:There is assocation between newspaper subscription and income level.

We use here r software .

R-code:

trial <- matrix(c(100,300,500,100), ncol=2)
colnames(trial) <- c('Low_income',   'High_income')
rownames(trial) <- c('LA_Times', 'LA_Daily')
trial.table <- as.table(trial)
chisq.test(trial.table)

Output:

Pearson's Chi-squared test with Yates' continuity correction

data: trial.table
X-squared = 337.85, df = 1, p-value < 2.2e-16

Since, (p-value < 2.2e-16)<0.05 , we reject H0 at 5% level of significance & conclude that

there is assocation between newspaper subscription and income level.

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