The following data represent the living situation of newlyweds in a large metropolitan area and their annual household income. What, if any, association exists between living situation and household income? Discuss the association.    < $20,000$20,-35,000$35,-50,000$50,-75,000> $75,000Own home3152202355524Rent home6766522311Live w/family89693042

Question
Asked Oct 15, 2019
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The following data represent the living situation of newlyweds in a large metropolitan area and their annual household income. What, if any, association exists between living situation and household income? Discuss the association. 

 

 

 

< $20,000

$20,-35,000

$35,-50,000

$50,-75,000

> $75,000

Own home

31

52

202

355

524

Rent home

67

66

52

23

11

Live w/family

89

69

30

4

2

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Expert Answer

Step 1

The hypotheses stated below:

From the given information, the annual household income of newlyweds in a large metropolitan

area and their living situation information was given.

Null hypothesis:

There is no association between living situation and household income.

Alternative Hypothesis:

There is an association between living situation and household income.

The observed frequency table is,

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<$20,000 $20-35000 $35-50,000 $50-75,000S$75,000 Totals 524 1,164 Own home 31 52 202 355 Rent home 67 66 52 23 11 219 Live W/family 89 69 30 4 2 194 | 1,577 Totals 187 187 284 382 537

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Step 2

The expected frequency of observation 31 is obtained below:

The expected frequency of observation 31 is,

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(Rowtotal)x (columntotal) (Grandtotal) (187) (1,164 Expected frequency 1577 138.03

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Step 3

The expected frequency table is obtained below:

The expected frequencies can be found out s...

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<$20,000 $20-35000 $35-50,000 $50-75,000>$75,000 Totals 1,164 219 138.03 396.37 281.96 Own home 138.03 209.62 74.57 Rent home 25.97 25.97 39.44 53.05 Live W/family Totals 23 23 34.94 46.99 66.06 194 1,577 537 187 187 284 382

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