Statement of a problem № m40053


A financial aid officer is studying the relationship between who borrows money for college in a family and the income of the family. As part of the study, 1611 families are randomly selected and the resulting data are organized as shown in the contingency table. At α = 0.01, can you conclude that who borrows money for college in a family is related to the income of the family? Perform the indicated chi-square independence test by doing the following. (a) Identify the claim and state H0 and Ha. (b) Determine the degrees of freedom, find the critical value, and identify the rejection region. (c) Find the chi-square test statistic. If convenient, use technology. (d) Decide whether to reject or fail to reject the null hypothesis. (e) Interpret the decision in the context of the original claim.

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