Question

1. You have been asked to ascertain whether there is a relationship between income level and the amount of money donated to the campaign. Sample data concerning these two categorical variables is given in appendix three below. The numbers in the table represent the numbers of supporters in various income categories who have donated certain amounts of money. At both the 2% and 5% levels of significance, is there evidence of a statistical relationship between income level and amount of money donated to the campaign?

                                                            Income Level

Amount Donated <20K [20K,40) [40K,60K) [60K,80K) ≥80K

[$0,$50)                     35        30              18             10             22                      

[$50,$100                  12        25              26             9              18                      

[$100,$150)               6         20              27             7               5                       

[$150,$200)               7         16              25             10              8                       

[$200,$250)               9         8               11             16              7                                   

[$250,$300)               10        7                8              19             13                      

≥$300                         17        9                8              14             19

Answer 1