Question

In: Statistics and Probability

An insurance company wants to know what whether perceptions of personal health are independent of gender.

An insurance company wants to know what whether perceptions of personal health are independent of gender. The company has hired you as a statistical consultant. You then collected a random sample of people and asked about their perceived health status. Based on the results of this survey, is the sex of the respondent independent from their perceived health status? Use 95% confidence.

Solutions

Expert Solution

The hypothesis being tested is:

H0: Sex of the respondent and perceived health status are independent

Ha: Sex of the respondent and perceived health status are not independent

Women   Men   Total  
Very Good Observed   89 121 210
Expected   104.27 105.73 210.00
O - E   -15.27 15.27 0.00
(O - E)² / E   2.24 2.20 4.44
Good Observed   82 65 147
Expected   72.99 74.01 147.00
O - E   9.01 -9.01 0.00
(O - E)² / E   1.11 1.10 2.21
Not so good Observed   42 30 72
Expected   35.75 36.25 72.00
O - E   6.25 -6.25 0.00
(O - E)² / E   1.09 1.08 2.17
Total Observed   213 216 429
Expected   213.00 216.00 429.00
O - E   0.00 0.00 0.00
(O - E)² / E   4.44 4.38 8.82
8.82 chi-square
2 df
.0121 p-value

The p-value is 0.0121.

Since the p-value (0.0121) is less than the significance level (0.05), we can reject the null hypothesis.

Therefore, we can conclude that sex of the respondent and perceived health status are not independent.


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