Question

The Business Graduate School at RUM is studying the test scores from this year's candidates. In particular, we are interested to know if the there is a dependent relationship between the candidates' verbal and quantitative scores.  

		Quantitative Scores
		Low	High
Verbal Scores	Low	39	155
	High	22	170

Use an alpha = 0.025.

Answer 1

to test independence of of two variables we have to use chi square test of independence

Actual Values:

39 155

22 170

Expected Values:

30.658 163.342

30.342 161.658

Chi-Squared Values:

2.26983 0.426029

2.29347 0.430467

Chi-Square = 5.4198

Degrees of Freedom = 1

p = 0.0199097

P value is less than given significance level so we have to reject null hypothesis. in this case we can conclude that given variables are not independent. or there is a dependent relationship between the candidates' verbal and quantitative scores.  

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