Question

Calculate percentages for the following table. A prior Gamma analysis has indicated that the relationship is significant (p-value  <0.05). Use these percentages to assess the strength (using the maximum difference method) and direction of this relationship.

FAMILY INCOME AND HAPPINESS (2004 GSS DATA)
Happiness
Family Income	Not  too happy	Pretty happy	Very Happy	Total
Below Average	16	36	15	67
Average	11	36	21	68
Above Average	2	12	8	22
Total	29	84	44	157

Write a very short essay describing the relationship between these two variables.

Answer 1

The percentages are:

		Not  too happy	Pretty happy	Very Happy	Total
Below Average	Observed	16	36	15	67
	% of total	10.2%	22.9%	9.6%	42.7%
Average	Observed	11	36	21	68
	% of total	7.0%	22.9%	13.4%	43.3%
Above Average	Observed	2	12	8	22
	% of total	1.3%	7.6%	5.1%	14.0%
Total	Observed	29	84	44	157
	% of total	18.5%	53.5%	28.0%	100.0%

There is a strong relationship between those who have an average family income and are pretty happy.

There is a weak relationship between those who have above average family income and are not happy.

Thus, we can say that there is a relationship between family income and happiness.