The report "Education Pays 2016"+ provided information on education level and earnings for a sample of adult Americans who are employed full-time. Data consistent with summary percentages given in the report are summarized in the accompanying table. High School Diploma Associate Degree Bachelor's Degree USE SALT Less than $20,000 to $40,000 to $60,000 $20,000 $39,999 $59,999 or more 8 11 46 69 57 161 105 55 101 243 63 82 Suppose this data resulted from a representative sample of 1,001 working adults whose highest level of education was a high school diploma, an Associate degree, or a Bachelor's degree. Each person in the sample was classified according to education level (high school diploma, Associate degree, or Bachelor's degree) and yearly income with possible categories of less than $20,000, $20,000 to $39,999, $40,000 to $59,999 and $60,000 or more. Is there evidence of an association between income category and education level? Test the appropriate hypotheses using a 0.05 significance level. State the null and alternative hypotheses.

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The report "Education Pays 2016"t provided information on education level and earnings for a sample of adult Americans who are employed full-time. Data consistent with summary
percentages given in the report are summarized in the accompanying table.
High School
Diploma
Associate
Degree
Bachelor's
Degree
USE SALT
Less than $20,000 to $40,000 to
$20,000 $39,999
$59,999
,2
8
11
46
69
57
161
105
55
101
$60,000
or more
243
63
82
Suppose this data resulted from a representative sample of 1,001 working adults whose highest level of education was a high school diploma, an Associate degree, or a Bachelor's degree. Each
person in the sample was classified according to education level (high school diploma, Associate degree, or Bachelor's degree) and yearly income with possible categories of less than $20,000,
$20,000 to $39,999, $40,000 to $59,999 and $60,000 or more. Is there evidence of an association between income category and education level? Test the appropriate hypotheses using a 0.05
significance level.
State the null and alternative hypotheses.
O Ho: There is an association between income category and education level.
H: There is no association between income category and education level.
оно
The proportions falling into the four income categories are not the same for all education levels.
The proportions falling into the four income categories are the same for all education levels.
O Ho: The proportions falling into the four income categories are the same for all education levels.
The proportions falling into the four income categories are not the same for all education levels.
O Ho: There is a weak association between income category and education level.
H₂: There is a strong association between income category and education level.
O Ho: There is no association between income category and education level.
H₂: There is an association between income category and education level.
Calculate the test statistic. (Round your answer to two decimal places.)
Use technology to calculate the P-value. (Round your answer to four decimal places.)
P-value =
What can you conclude?
O Fail to reject Ho. We have convincing evidence that there is an association between income category and education level.
O Reject Ho. We do not have convincing evidence that there is an association between income category and education level.
O Reject Ho. We have convincing evidence that there is an association between income category and education level.
Fail to reject Ho. We do not have convincing evidence that there is an association between income category and education level.
Transcribed Image Text:The report "Education Pays 2016"t provided information on education level and earnings for a sample of adult Americans who are employed full-time. Data consistent with summary percentages given in the report are summarized in the accompanying table. High School Diploma Associate Degree Bachelor's Degree USE SALT Less than $20,000 to $40,000 to $20,000 $39,999 $59,999 ,2 8 11 46 69 57 161 105 55 101 $60,000 or more 243 63 82 Suppose this data resulted from a representative sample of 1,001 working adults whose highest level of education was a high school diploma, an Associate degree, or a Bachelor's degree. Each person in the sample was classified according to education level (high school diploma, Associate degree, or Bachelor's degree) and yearly income with possible categories of less than $20,000, $20,000 to $39,999, $40,000 to $59,999 and $60,000 or more. Is there evidence of an association between income category and education level? Test the appropriate hypotheses using a 0.05 significance level. State the null and alternative hypotheses. O Ho: There is an association between income category and education level. H: There is no association between income category and education level. оно The proportions falling into the four income categories are not the same for all education levels. The proportions falling into the four income categories are the same for all education levels. O Ho: The proportions falling into the four income categories are the same for all education levels. The proportions falling into the four income categories are not the same for all education levels. O Ho: There is a weak association between income category and education level. H₂: There is a strong association between income category and education level. O Ho: There is no association between income category and education level. H₂: There is an association between income category and education level. Calculate the test statistic. (Round your answer to two decimal places.) Use technology to calculate the P-value. (Round your answer to four decimal places.) P-value = What can you conclude? O Fail to reject Ho. We have convincing evidence that there is an association between income category and education level. O Reject Ho. We do not have convincing evidence that there is an association between income category and education level. O Reject Ho. We have convincing evidence that there is an association between income category and education level. Fail to reject Ho. We do not have convincing evidence that there is an association between income category and education level.
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