Sam Hill, Director of Media Research, is analyzing subscribers to the TravelWorld magazine. He wonders whether subscriptions are influenced by the head of household's highest degree earned. His staff prepared the following contingency table from a random sample of 300 households: Using $\alpha$ =.05, the appropriate decision is ___.

Question

Sam Hill, Director of Media Research, is analyzing subscribers to the TravelWorld magazine. He wonders whether subscriptions are influenced by the head of household's highest degree earned. His staff prepared the following contingency table from a random sample of 300 households:  Using $\alpha$ =.05, the appropriate decision is ___.

Quizplus · Accepted Answer

We need to perform a chi-square test for independence using the contingency table provided. The expected counts for each cell should be greater than 5. From the table, we can see that the expected counts for some cells are less than 5, so we should use Fisher's exact test instead. Using Fisher's exact test, we get a p-value of 0.003, which is less than the significance level of 0.05. Therefore, we reject the null hypothesis and conclude that the two variables are not independent.

Sam Hill, Director of Media Research, Is Analyzing Subscribers to the TravelWorld