Question

One of the issues that came up in a recent national election (and is likely to arise in many future elections) is how to deal with a sluggish economy. Specifically, should governments cut spending, raise taxes, inflate the economy (by printing more money) or do none of the above and let the deficit rise? And as with most other issues, politicians need to know which parts of the electorate support these options. Suppose that a random sample of 1,000 people was asked which option they support and their political affiliations. The possible responses to the question about political affiliation were Democrat, Republican, and Independent (which included a variety of political persuasions). The responses are summarized in the accompanying table. Do these results allow us to conclude at the 1% significance level that political affiliation affects support for the economicoptions?


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  • CreatedFebruary 03, 2015
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