5. Researchers are investigating household-income level and whether the family owns their home or rents, in a particular city. They will consider the proportion of high-income households who own their home and the proportion of low-income households who own. They want to check whether the two categorical variables (income level and home-own-v.-rent) are related. Test at the 0.01 significance level.Table of number of households in each sub-category. Data Own Rent high-income 47 50 low-income 34 44 a) Identify the correct alternative hypothesis for this test. Household income level and home-ownership-v.-renting are independent. There is a relationship between household income level and home-ownership-v.-renting. There is no relationship between household income level and home-ownership-v.-renting. Household income level varies much more than home-ownership-v.-renting proportions. b) The χ2χ2test statistic value is: c) The P-value is: d) Based on this, we Reject H0H0 Do not reject H0H0 e) Which means The two variables are mutually exclusive. There is definitely no relationship between the two variables. There is a significant relationship between the two variables. The data is not strong enough to support that there is a significant relationship between the two variables.

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Description: 5. Researchers are investigating household-income level and whether the family owns their home or rents, in a particular city. They will consider the proportion of high-income households who own their home and the proportion of low-income households

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section: Chapter Questions

Problem 13PT

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5. Researchers are investigating household-income level and whether the family owns their home or rents, in a particular city. They will consider the proportion of high-income households who own their home and the proportion of low-income households who own. They want to check whether the two categorical variables (income level and home-own-v.-rent) are related. Test at the 0.01 significance level.

Table of number of households in each sub-category.

Data	Own	Rent
high-income	47	50
low-income	34	44

a) Identify the correct alternative hypothesis for this test.

Household income level and home-ownership-v.-renting are independent.
There is a relationship between household income level and home-ownership-v.-renting.
There is no relationship between household income level and home-ownership-v.-renting.
Household income level varies much more than home-ownership-v.-renting proportions.

b) The χ2χ2test statistic value is:

c) The P-value is:

d) Based on this, we

Reject H0H0
Do not reject H0H0

e) Which means

The two variables are mutually exclusive.
There is definitely no relationship between the two variables.
There is a significant relationship between the two variables.
The data is not strong enough to support that there is a significant relationship between the two variables.

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