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4 continue our analysis from Exercise 2, this time examining the relationship be

ID: 3365615 • Letter: 4

Question

4 continue our analysis from Exercise 2, this time examining the relationship between edu- We cational attainment (RDEGREE: 0 = less tban bigb school -bigh school degree, 2 some college or more) and help for the poor (HELPPOOR). The obtained chi-square is 40.43. Based on arn alpha of .05, do you reject the null hypothesis? Explain. helppoor SHOULD GOVT IMPROVE STANDARD OF LIVING? RDegree Recoded Degree Crosstabulation Count RDegree Recoded Degree -00-TT00-T 2.00- 32 41 126 58 35 Total helppoor 30 65 127 79 311 120 118 755 1 GOVT ACTION SHOULD GOVT 2 IMPROVE 32 153 56 69 375 DOF 3 AGREE WITH 32 LIVING? PEOPLE HELP 14 SELVES 292 Total

Explanation / Answer

Solution:-

State the hypotheses. The first step is to state the null hypothesis and an alternative hypothesis.

H0: Education attainment and help for poor are independent.

Ha: Education attainment and help for poor are not independent.

Formulate an analysis plan. For this analysis, the significance level is 0.05. Using sample data, we will conduct a chi-square test for independence.

Analyze sample data. Applying the chi-square test for independence to sample data, we compute the degrees of freedom, the expected frequency counts, and the chi-square test statistic. Based on the chi-square statistic and the degrees of freedom, we determine the P-value.

DF = (5 - 1) * (3 - 1)

D.F = 8

2 = [ (Or,c - Er,c)2 / Er,c ]

2 = 40.43

The P-value is the probability that a chi-square statistic having 8 degrees of freedom is more extreme than 40.43.

We use the Chi-Square Distribution Calculator to find P(2 > 40.43) = less than 0.0001.

Interpret results. Since the P-value (almost 0) is less than the significance level (0.05), we have to reject the null hypothesis.

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