Researchers are investigating household-income level and whether the family owns their home or rents, in a particular city. They will consider the proportion of high-income households who own their home and the proportion of low-income households who own. They want to check whether the two categorical variables (income level and home-own-v.-rent) are related. Test at the 0.1 significance level. Table of number of households in each sub-category. Data Own Rent high-income 58 37 low-income 31 50 a) Identify the correct alternative hypothesis for this test. There is no relationship between household income level and home-ownership-v.-renting. Household income level varies much more than home-ownership-v.-renting proportions. Household income level and home-ownership-v.-renting are independent. There is a relationship between household income level and home-ownership-v.-renting. b) The χ2test statistic value is: c) The P-value is:

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2-Proportion Test

In a 2-proportion test, two separate proportions are measured at the same time, and their similarity is evaluated. It is also known as a 2-proportion z-test, and a comparison of two different proportions is done in this method.