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 ______________.
A) reject the null hypothesis and conclude the two variables are independent
B) do not reject the null hypothesis and conclude the two variables are independent
C) reject the null hypothesis and conclude the two variables are not independent
D) do not reject the null hypothesis and conclude the two variables are not independent
E) do nothing

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 ______________.
A) reject the null hypothesis and conclude the two variables are independent 
B) do not reject the null hypothesis and conclude the two variables are independent 
C) reject the null hypothesis and conclude the two variables are not independent 
D) do not reject the null hypothesis and conclude the two variables are not independent 
E) do nothing

Quizplus · Accepted Answer

We can perform a chi-square test of independence using the contingency table provided. The null hypothesis is that there is no association between the head of household's highest degree earned and subscriptions to TravelWorld magazine. The alternative hypothesis is that there is an association. Using a statistical software, we obtain a chi-square test statistic of 13.25 with 4 degrees of freedom and a p-value of 0.010. Since the p-value is less than the significance level of 0.05, we reject the null hypothesis and conclude that the two variables are not independent. Therefore, the appropriate decision is to reject the null hypothesis and conclude the two variables are not independent (choice C).

Sam Hill,Director of Media Research,is Analyzing Subscribers to the TravelWorld α\alphaα

Sam Hill,Director of Media Research,is Analyzing Subscribers to the TravelWorld $\alpha$