Using the Following Data, Test for the Independence of the Variables

question 8

Essay

Using the following data, test for the independence of the variables. Note: Assume a significance level of 0.05 wherever necessary.) $$\begin{array} { | c | c | c |} \hline \text { Respandent } & \text { Gender } & \text { Brealfast Preference } \\\hline 1 & \text { Fernale } & \text { Fruits } \\\hline 2 & \text { Male } & \text { Cereal } \\\hline 3 & \text { Male } & \text { Milk } \\\hline 4 & \text { Fernale } & \text { Fruits } \\\hline 5 & \text { Fernale } & \text { Milk } \\\hline 6 & \text { Male } & \text { Cereal } \\\hline 7 & \text { Male } & \text { Milk } \\\hline 8 & \text { Male } & \text { Milk } \\\hline 9 & \text { Fernale } & \text { Fruits } \\\hline\end{array}$$ $$\begin{array} { | c | c | c | } \hline 10 & \text { Male } & \text { Fruits } \\\hline 11 & \text { Male } & \text { Cereal } \\\hline 12 & \text { Fernale } & \text { Cereal } \\\hline 13 & \text { Fernale } & \text { Milk } \\\hline 14 & \text { Male } & \text { Fruits } \\\hline 15 & \text { Female } & \text { Fruits } \\\hline\end{array}$$

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Definitions:

Interest Rate

The interest rate is the cost of borrowing money or the return on investment for savings, expressed as a percentage of the principal amount per period of time.

Large Denomination Time Deposits

Savings accounts or Certificates of Deposit (CDs) with high minimum deposit requirements, typically offering better interest rates but less liquidity.

M2

A measure of the money supply that includes cash and checking deposits as well as near money that can be easily converted to cash, like savings deposits, money market securities, and mutual funds.

M3

An indicator of the total money supply encompassing M2—which consists of cash, checking deposits, and readily convertible near money—along with substantial time deposits, institutional money market funds, and additional significant liquid assets.