Test of Independence · Exercise 28

For each problem, use a solution sheet to solve the hypothesis test problem. Go to Appendix E for the chi-square solution sheet. Round expected frequency to two decimal places.

Suppose that 600 thirty-year-olds were surveyed to determine whether there is a relationship between the level of education an individual has and salary. Conduct a test of independence.

\begin{array}{|c|c|c|c|c|}\hline \text{Annual Salary} & \text{Not a High School Graduate} & \text{High School Graduate} & \text{College Graduate} & \text{Masters or Doctorate} \\ \hline \text{< $30,000} & \text{15} & \text{25} & \text{10} & \text{5} \\ \hline \text{}30,000–\\text{40,000} & \text{20} & \text{40} & \text{70} & \text{30} \\ \hline \text{}40,000–\\text{50,000} & \text{10} & \text{20} & \text{40} & \text{55} \\ \hline \text{}50,000–\\text{60,000} & \text{5} & \text{10} & \text{20} & \text{60} \\ \hline \text{$60,000+} & \text{0} & \text{5} & \text{10} & \text{150} \\ \hline\end{array}

This exercise builds on another exercise in its source book, which isn't shown here.

OpenStax, Statistics · §11.3 Test of Independence · Exercise 28