Exhibit 12.5 In the following table,individuals are cross-classified by their age group and income level. Refer to Exhibit 12.5.Using the critical value approach,the decision and conclusion are:
A)Do not reject the null hypothesis,age and income are dependent
B)Do not reject the null hypothesis,age and income are independent
C)Reject the null hypothesis,age and income are dependent
D)Reject the null hypothesis,age and income are independent

Question

Exhibit 12.5 In the following table,individuals are cross-classified by their age group and income level.  Refer to Exhibit 12.5.Using the critical value approach,the decision and conclusion are:
A)Do not reject the null hypothesis,age and income are dependent 
B)Do not reject the null hypothesis,age and income are independent 
C)Reject the null hypothesis,age and income are dependent 
D)Reject the null hypothesis,age and income are independent

Quizplus · Accepted Answer

The critical value approach involves comparing the calculated chi-square value to the critical value from a chi-square table. In this case, the calculated chi-square value is greater than the critical value, leading us to reject the null hypothesis that age and income are independent. Therefore, we conclude that age and income are dependent variables.