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Chi-square test of independence:

Asurvey was conducted of 175 young adults whose parents are classified either as wealthy, middle class or poor to determine their highest level of schooling (graduated from university, graduated from high school or neither). The results are summarized below.

Based on the data collected is the person's level of schooling independent of their parents' wealth?

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1) Write out the null and alternative hypothesis. 2) Calculate the Chi-square test statistic on the data below. Observed values University High School None TOTAL Wealthy 20 15 10 45 Middle Class 40 25 20 85 Poor 8 14 23 45 TOTAL 68 54 53 175 Remember that the formula is: X = S (0-E) E And that expected frequencies can be determined using the formula E = fof,/N Category Observed (0) (0-E)2/E Wealthy, University 20 Wealthy, High School 15 Wealthy, None 10 Middle Class, University 40 Middle Class, High School 25 Middle Class, None 20 Poor, University 8 Poor, High School 14 Poor, None 23 3) What is the critical value? [Remember df = (C- 1)(R-1) ]where C is columns of data and R is rows of data. 4) Should the null be rejected? Explain why 5) Is parental wealth independent of educational level