In: Statistics and Probability
A researcher wants to study the relationship between salary and gender. She randomly selects 384individuals and determines their salary and gender. Can the researcher conclude that salary and gender are dependent?
| Income | Male | Female | Total |
|---|---|---|---|
| Below $25,000 | 31 | 84 | 115 |
| $25,000-$50,000 | 59 | 45 | 104 |
| $50,000-$75,000 | 30 | 20 | 50 |
| Above $75,000 | 65 | 50 | 115 |
| Total | 185 | 199 | 384384 |
State the null and alternative hypothesis
-Find the expected value for the number of men with an income below $25,000?
Find the expected value for the number of women with an income above $75,000. Round your answer to one decimal place.
-Find the value of the test statistic?
-Find the degrees of freedom associated with the test statistic for this problem?
-Find the critical value of the test at the 0.005 level of significance?
-Make the decision to reject or fail to reject the null hypothesis at the 0.005 level of significance?
-State the conclusion of the hypothesis test at the 0.005 level of significance? (Sufficient evidence or not sufficient evidence?)
| Null hypotheisis:Ho: salary and gender are independent. |
| alternate hypothesis:Ha: salary and gender are dependent. |
expected value for the number of men with an income below $25,000=(115*185/384)=55.4
expected value for the number of women with an income above $75,000=(115*199/384)=59.6
| Applying chi square test of independence: |
| Expected | Ei=row total*column total/grand total | male | female | Total |
| <25000 | 55.40 | 59.60 | 115 | |
| 25000-50000 | 50.10 | 53.90 | 104 | |
| 50000-75000 | 24.09 | 25.91 | 50 | |
| >75000 | 55.40 | 59.60 | 115 | |
| total | 185 | 199 | 384 | |
| chi square χ2 | =(Oi-Ei)2/Ei | male | female | Total |
| <25000 | 10.7491 | 9.9929 | 20.7419 | |
| 25000-50000 | 1.5794 | 1.4683 | 3.0477 | |
| 50000-75000 | 1.4507 | 1.3486 | 2.7993 | |
| >75000 | 1.6622 | 1.5452 | 3.2074 | |
| total | 15.4414 | 14.3550 | 29.7964 | |
| test statistic X2 = | 29.796 | |||
| degree of freedom(df) =(rows-1)*(columns-1)= | 3 | |
| for 3 df and 0.005 level of signifcance critical value χ2= | 12.838 | ||
reject the null hypothesis
Sufficient evidence to conclude that
| salary and gender are dependent. |