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. |