Suppose that PTPTN would like to investigate if the repayment score and income level of an individual are independent of one another. PTPTN selected a random sample of 164 employed adults and asked them to report their repayment score and their income range. The repayment score is measured based on the overdue of student loan repayment in months and the following contingency table presents these results: a. Set up the competing hypotheses to determine if the repayment score and income level are dependent. b. What is the degree of freedom for the test? c. Calculate the value of the test statistic (?2).
Suppose that PTPTN would like to investigate if the repayment score and income level of an individual are independent of one another. PTPTN selected a random sample of 164 employed adults and asked them to report their repayment score and their income
a. Set up the competing hypotheses to determine if the repayment score and income level are dependent.
b. What is the degree of freedom for the test?
c. Calculate the value of the test statistic (?2).
d. Compute the p-value.
e. Does the evidence suggest the repayment score and income level are dependent at the 1% significance level?
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