The following table gives the annual incomes (in thousands of dollars) and amounts (in thousands of dollars) of life insurance policies for eight persons.

(a) At the 98% confidence level, test whether annual income and the amount of life insurance policies are independent.
(b) Find the attained significance level.
(c) State any assumptions you have made in solving the problem.

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Annual income 42 58 27 36 70 24 53 37 Life insurance 150 175 25 75 250 50 250 100