Answer:
Correct option:
"There is a relationship between income and food expenditures"
Step-by-step explanation:
Te hypothesis that is tested is:
<em>H₀</em>: There is no relationship between income and amount of money spent on food.
<em>Hₐ</em>: There is a significant relationship between income and amount of money spent on food.
The significance level of the test is:
<em>α</em> = 0.05
The decision rule based on the <em>p</em>-value of the test is:
If the <em>p</em>-value of the test statistic is less than the significance level then the null hypothesis is rejected. And if the <em>p</em>-value of the test statistic is more than the significance level then the null hypothesis is failed to be rejected.
The <em>p</em>-value of the test is computed as,
<em>p</em>-value = 0.01.
The <em>p</em>-value = 0.01 < <em>α</em> = 0.05.
The null hypothesis will be rejected at 5% level of significance.
<u>Conclusion:</u>
As the null hypothesis is rejected it can be concluded that there is a significant relationship between income and amount of money spent on food.
Thus, the correct option is:
"There is a relationship between income and food expenditures."