Question

Suppose that 600 30-year-olds were surveyed to determine whether or not there is a relationship between the level of education an individual has and salary. Conduct a test of independence at the 5% level.

• What is the test statistic? (Round your answer to two decimal places.)

• Part (f)

  What is the p-value? (Round your answer to four decimal places.)
  
  
  Explain what the p-value means for this problem.

  If H₀ is true, then there is a chance equal to the p-value that the value of the test statistic will be equal to or less than the calculated value. If H₀ is false, then there is a chance equal to the p-value that the value of the test statistic will be equal to or less than the calculated value.     If H₀ is true, then there is a chance equal to the p-value that the value of the test statistic will be equal to or greater than the calculated value. If H₀ is false, then there is a chance equal to the p-value that the value of the test statistic will be equal to or greater than the calculated value.

Annual Salary	Not a high school graduate	High school graduate	College graduate	Masters or doctorate
< $30,000	15	25	10	10
$30,000 – $40,000	20	40	75	25
$40,000 – $50,000	10	10	40	55
$50,000 – $60,000	5	10	20	60
$60,000+	0	5	15	150

Answer 1

The statistical software output for this problem is:

From above output:

Test statistic = 253.76

p - Value = 0.0000

If H₀ is true, then there is a chance equal to the p-value that the value of the test statistic will be equal to or greater than the calculated value. Option C​​​​​​​ is correct.