Suppose Bank of America would like to investigate if the credit score and income level of an individual are independent of one another. Bank of America selected a random sample of 400 adults and asked them to report their credit score range and their income range. The following contingency table presents these results. Using α = 0.01, the critical value for this hypothesis test is ________.
A) 9.488
B) 12.592
C) 16.812
D) 13.277

Question

Suppose Bank of America would like to investigate if the credit score and income level of an individual are independent of one another. Bank of America selected a random sample of 400 adults and asked them to report their credit score range and their income range. The following contingency table presents these results.  Using α = 0.01, the critical value for this hypothesis test is ________.
A) 9.488 
B) 12.592 
C) 16.812 
D) 13.277

Quizplus · Accepted Answer

To find the critical value for a chi-squared test with 1 degree of freedom and an alpha level of 0.01, we need to look up the value in a chi-squared distribution table. The table shows that the critical value is 16.812.

Suppose Bank of America Would Like to Investigate If the Credit