A Local Politician Was Interested in Determining Whether Income Level

question 64

Multiple Choice

A local politician was interested in determining whether income level affects opinion regarding the government's bailout bill for easing the 2008 financial crisis on Wall Street.
He surveyed a sample of his constituents and performed a Chi-square test. The resulting
P-value was 0.024. At the 0.01 level of significance, he should conclude that

• A) Income level affects opinion.
• B) There is a relationship between income level and opinion.
• C) Opinion and income level are independent.
• D) Reject the null hypothesis.
• E) Both B and D.

---

Definitions:

Null Hypothesis

A statement that assumes there is no significant difference or effect and serves as the starting point for hypothesis testing.

Significance Level

A threshold in statistical hypothesis testing that measures the probability of rejecting the null hypothesis when it is true, commonly set at values like 0.05 or 0.01.

SRS

Simple Random Sampling, a method of sampling where every individual has an equal chance of being selected from a population.

T Procedure

A statistical method used to infer the unknown mean of a population based on a sample mean, especially when the sample size is small.