A study by the Massachusetts Community & Banking Council found that black people, and, to a lesser extent, Latinx, remain largely unable to borrow money at the same interest rate as whites (The Boston Globe, February 28, 2008). The following contingency table shows representative data for the city of Boston, cross-classified by race and type of interest rate received: (You may find it useful to reference the appropriate table: chi-square table or F table) Type of Interest Rate on LoanRaceHigh Interest RateLower Interest RateBlack553480Latino265324White4913,701At the 5% significance level, do the data indicate that the interest rate received on a loan is dependent on race?a. Choose the appropriate null and alternative hypotheses.H0: Interest rate received is independent of race.; HA: Interest rate received is dependent on race.H0: Interest rate received is dependent of race.; HA: Interest rate received is independent on race.b-1. Calculate the value of the test statistic. (Round intermediate calculations to at least 4 decimal places and final answer to 3 decimal places.)b-2. Find the p-value.p-value < 0.010.01 ≤ p-value < 0.0250.025 ≤ p-value < 0.050.05 ≤ p-value < 0.10p-value ≥ 0.10c. What is your conclusion?Reject H0; there is enough evidence to support the claim that interest rate and race are dependent.Reject H0; there is not enough evidence to support the claim that interest rate and race are dependent.Do not reject H0; there is enough evidence to support the claim that interest rate and race are dependent.Do not reject H0; there is not enough evidence to support the claim that interest rate and race are dependent.

here complete table : Type of Interest Rate on Loan Race High Interest Rate Lower…

Answered: a. Choose the appropriate null and…

Glencoe Algebra 1, Student Edition, 9780079039897, 0079039898, 2018

18th Edition

ISBN:9780079039897

Author:Carter

Publisher:Carter

Chapter10: Statistics

Section10.2: Representing Data

Problem 22PFA

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A study by the Massachusetts Community & Banking Council found that black people, and, to a lesser extent, Latinx, remain largely unable to borrow money at the same interest rate as whites (The Boston Globe, February 28, 2008). The following contingency table shows representative data for the city of Boston, cross-classified by race and type of interest rate received: (You may find it useful to reference the appropriate table: chi-square table or F table)

	Type of Interest Rate on Loan
Race	High Interest Rate	Lower Interest Rate
Black	553	480
Latino	265	324
White	491	3,701

At the 5% significance level, do the data indicate that the interest rate received on a loan is dependent on race?

a. Choose the appropriate null and alternative hypotheses.

H₀: Interest rate received is independent of race.; H_A: Interest rate received is dependent on race.
H₀: Interest rate received is dependent of race.; H_A: Interest rate received is independent on race.

b-1. Calculate the value of the test statistic. (Round intermediate calculations to at least 4 decimal places and final answer to 3 decimal places.)

b-2. Find the p-value.

p-value < 0.01
0.01 ≤ p-value < 0.025
0.025 ≤ p-value < 0.05
0.05 ≤ p-value < 0.10
p-value ≥ 0.10

c. What is your conclusion?

Reject H₀; there is enough evidence to support the claim that interest rate and race are dependent.
Reject H₀; there is not enough evidence to support the claim that interest rate and race are dependent.
Do not reject H₀; there is enough evidence to support the claim that interest rate and race are dependent.
Do not reject H₀; there is not enough evidence to support the claim that interest rate and race are dependent.

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