Cindy, a financial analyst is studying the relationship between family decisions to borrow money to finance a child’s education and the child’s expected income after graduation. To aid the study, 440 randomly selected families were surveyed with the results provided below. At alpha =0.01, can you conclude that the decision to borrow money is related to a child’s expected income after graduation? Expected income More Likely Less Likely Did not make a difference Did not consider it Less than $20,000 37 10 22 25 $20,000-$45000 28 12 15 16 $45000-$70000 55 9 65 48 Greater than $70000 36 1 29 32 What is the degrees of freedom? What is the critical value? Leave your answers in 4 decimal places The degrees of freedom is and the P- value is .
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Cindy, a financial analyst is studying the relationship between family decisions to borrow money to finance a child’s education and the child’s expected income after graduation. To aid the study, 440 randomly selected families were surveyed with the results provided below. At alpha =0.01, can you conclude that the decision to borrow money is related to a child’s expected income after graduation?
|
Expected income |
More Likely |
Less Likely |
Did not make a difference |
Did not consider it |
|
Less than $20,000 |
37 |
10 |
22 |
25 |
|
$20,000-$45000 |
28 |
12 |
15 |
16 |
|
$45000-$70000 |
55 |
9 |
65 |
48 |
|
Greater than $70000 |
36 |
1 |
29 |
32 |
What is the degrees of freedom? What is the critical value? Leave your answers in 4 decimal places
The degrees of freedom is and the P- value is .
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