Question

Question 1. [7 marks total] Parental leave is often compensated to some degree, but the amount
of compensation varies greatly. You read a research article that stated,
"across people of all incomes, 47% of leave-takers received full pay during
their leave, 16% received partial pay, and 37% received no pay."

After reading this, you wonder what the distribution of parental leave payment
pay is for low income households. Suppose you conduct a survey of leave-takers within households
earning less than $30,000 per year. You surveyed 225 people (selected in a
random sample) and found that 51 received full pay, 33 received partial pay, and
141 received no pay.

1.a) [1 mark] You would like to investigate whether the distribution of pay for
households earning < $30,000 is different from that of all income levels. Does
this correspond to a chi-square test of independence or a chi-square test for
goodness of fit?

Answer 1