The Following Scatterpolt Shows the Percentage of the Vote a Candidate

question 16

Multiple Choice

The following scatterpolt shows the percentage of the vote a candidate received in the 2004 senatoral elections according to the voter's income level based on an exit poll of the voters conducted bu CNN. The income levels 1-8 correspond to the followng income classes: 1=under $15,00; 2=$15-30,000; 3=$30-50,000; 4=$50=75,000; 5=$75-100,000; 6=$100-150,000; 7=$150=200,000; 8=$200,000 or more.

Use the election scatterplot to determine whether there is a correlation between percentage of vote and income level at the 0.01 significance level with a null hypothesis of P_z=0 .

• A) The test statistic is between the critical values, so we fail to reject the null hypothesis. There is no evidence to support a claim of correlation between percentage of vote and income level.
• B) The test statistic is not between the critical values, so we fail to reject the null hypothesis. There is no evidence to support a claim of correlation between percentage of vote and income level.
• C) The test statistic is between the critical values, so we reject the null hypothesis. There is sufficient evidence to support a claim of correlation between percentage of vote and income level.
• D) The test statistic is not between the critical values, so we reject the null hypothesis. There is sufficient evidence to support a claim of correlation between percentage of vote and income level.

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Definitions:

Rational Economics

An approach to economics that assumes individuals make decisions based on logical evaluation of available information, aiming for maximum utility.

Learned Behavior

Actions or reactions that an individual acquires through experience or by being taught.

John Maynard Keynes

A British economist whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.

Economic Growth

An increase in the production of goods and services in an economy over a period of time, usually measured by GDP.