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Lotteries have become important sources of revenue for governments.  Many people have criticized lotteries, however, referring to...

Lotteries have become important sources of revenue for governments.  Many people have criticized lotteries, however, referring to them as a tax on the poor and uneducated.  In an examination of this issue, a random sample of 100 adults was asked how much they spend on lottery tickets and was interviewed about various socioeconomic variables.  The purpose of this study is to test the following beliefs:

  1. Relatively uneducated people spend more on lotteries than do relatively educated people.
  2. Older people buy more lottery tickets than younger people.
  3. People with more children spend more on lotteries than people with fewer children.
  4. Relatively poor people spend a greater proportion of their income on lotteries than relatively rich people.

  

  1. Test each of the beliefs (1-4 above).  What conclusions can you draw?  Provide evidence for your answers. (5 points)

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