Question

Perform a chi-square test to look at the relationship between region of the country (REGION) and financial comfort (FCOMFORT). Using alpha = .05, what would you conclude from your test:

a. Financial comfort differs depending on the area one lives in.
b. People living in less expensive areas are more likely to report that they are financially comfortable.
c. There is not a significant relationship between region and financial comfort.

d. People living in the northeast region are most likely to report that they are financially struggling.

From SPSS

Case Processing Summary
	Cases
	Valid		Missing		Total
	N	Percent	N	Percent	N	Percent
Financial Comfort * US Region	400	100.0%	0	0.0%	400	100.0%

Financial Comfort * US Region Crosstabulation
Count
		US Region
		New England	N. East	Mid Atlantic	S East	Great Lakes	N Central
Financial Comfort	Comfortable	14	16	21	37	19	14
	Struggling	14	19	15	26	13	13
Total		28	35	36	63	32	27

Chi-Square Tests
	Value	df	Asymptotic Significance (2-sided)
Pearson Chi-Square	3.378a	9	.947
Likelihood Ratio	3.381	9	.947
Linear-by-Linear Association	.000	1	.983
N of Valid Cases	400

Answer 1

	Expected frequency of a cell = sum of row*sum of column / total sum
	Expected Frequencies
							Total
Comfort	28*121/221=15.33	35*121/221=19.163	36*121/221=19.71	63*121/221=34.493	32*121/221=17.52	27*121/221=14.783	121
Struggling	28*100/221=12.67	35*100/221=15.837	36*100/221=16.29	63*100/221=28.507	32*100/221=14.48	27*100/221=12.217	100
Total	28	35	36	63	32	27	221

	(fo-fe)^2/fe
Comfort	0.115	0.522	0.084	0.182	0.1250	0.0415
Struggling	0.140	0.632	0.102	0.220	0.1512	0.0502

Chi-Square Test Statistic,χ² = Σ(fo-fe)^2/fe =   2.366

Level of Significance =   0.05                          
Number of Rows =   2                          
Number of Columns =   6                          
Degrees of Freedom=(#row - 1)(#column -1) = (2- 1 ) * ( 6- 1 ) =   5                          
                              
p-Value =   0.7966   [Excel function: =CHISQ.DIST.RT(χ²,df) ]                      
Decision:    p value > α , do not reject Ho                          

which means relationship is not significant and hence

c. There is not a significant relationship between region and financial comfort.

Thanks in advance!

revert back for doubt

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