Question

A test of hypothesis is conducted to determine whether annual income and education level are independent. It is determined that the value of test statistic is 24.32 and the critical value of test statistics is 13.32. What specific conclusion can we draw about annual income and education level

Answer 1

Answer: We concluded that annual income and education level are not independent.

Step-by-step explanation:

For the given situation, the null and alternate hypothesis can be formulated as:

$H_0:$ annual income and education level are independent.

$H_a:$ annual income and education level are not independent.

Given,  the value of test statistic is 24.32 and the critical value of test statistics is 13.32.

i.e. the test statistic value is greater than the critical value, thus we have enough evidence to reject the null hypothesis.

Therefore, we reject null hypothesis .

So , we concluded that annual income and education level are not independent.