In: Statistics and Probability
| 
 Response  | 
 less High School  | 
 High School  | 
 Associate Degree  | 
 Bachelor Degree  | 
 Graduate Degree  | 
| 
 Yes  | 
 312  | 
 542  | 
 31  | 
 102  | 
 44  | 
| 
 No  | 
 88  | 
 209  | 
 22  | 
 70  | 
 33  | 
At the 0.05 level of significance, test the claim that the response is independent of a person’s level of education.
I did the work and got p-value 0.0002
chi-square=32.52
-I'm not sure I did the work correct I put it in stat crunch with my observations and expectations
Please correct me if I am wrong
Solution:
Here, we have to use chi square test for independence of two categorical variables.
Null hypothesis: H0: Two categorical variables are independent.
Alternative hypothesis: Ha: Two categorical variables are dependent.
We assume/given level of significance = α = 0.05
Test statistic formula is given as below:
Chi square = ∑[(O – E)^2/E]
Where, O is observed frequencies and E is expected frequencies.
E = row total * column total / Grand total
We are given
Number of rows = r = 2
Number of columns = c = 5
Degrees of freedom = df = (r – 1)*(c – 1) = 1*4 = 4
α = 0.05
Critical value = 9.487729
(by using Chi square table or excel)
Calculation tables for test statistic are given as below:
| 
 Observed Frequencies  | 
||||||
| 
 Level of education  | 
||||||
| 
 Response  | 
 Less High School  | 
 High School  | 
 Associate Degree  | 
 Bachelor Degree  | 
 Graduate Degree  | 
 Total  | 
| 
 Yes  | 
 312  | 
 542  | 
 31  | 
 102  | 
 44  | 
 1031  | 
| 
 No  | 
 88  | 
 209  | 
 22  | 
 70  | 
 33  | 
 422  | 
| 
 Total  | 
 400  | 
 751  | 
 53  | 
 172  | 
 77  | 
 1453  | 
| 
 Expected Frequencies  | 
||||||
| 
 Level of education  | 
||||||
| 
 Response  | 
 Less High School  | 
 High School  | 
 Associate Degree  | 
 Bachelor Degree  | 
 Graduate Degree  | 
 Total  | 
| 
 Yes  | 
 283.8266  | 
 532.8844  | 
 37.60702  | 
 122.0454  | 
 54.63661  | 
 1031  | 
| 
 No  | 
 116.1734  | 
 218.1156  | 
 15.39298  | 
 49.95458  | 
 22.36339  | 
 422  | 
| 
 Total  | 
 400  | 
 751  | 
 53  | 
 172  | 
 77  | 
 1453  | 
| 
 Calculations  | 
||||
| 
 (O - E)  | 
||||
| 
 28.17343  | 
 9.115623  | 
 -6.60702  | 
 -20.0454  | 
 -10.6366  | 
| 
 -28.1734  | 
 -9.11562  | 
 6.60702  | 
 20.04542  | 
 10.63661  | 
| 
 (O - E)^2/E  | 
||||
| 
 2.796575  | 
 0.155934  | 
 1.16076  | 
 3.292372  | 
 2.070728  | 
| 
 6.832392  | 
 0.380966  | 
 2.835884  | 
 8.043687  | 
 5.059053  | 
Test Statistic = Chi square = ∑[(O – E)^2/E] = 32.62835
χ2 statistic = 32.62835
P-value = 0.00000142
(By using Chi square table or excel)
P-value < α = 0.05
So, we reject the null hypothesis
There is not sufficient evidence to conclude that the response is independent of a person’s level of education.