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.....child's household income level growing up and how they spend their money when they become adults. Essentially, you want to know if there is any association between childhood wealth and spending in their later years asadults -- not only in the sample but also in the larger population from which the sample was drawn.THIS DATA IS COMPLETELY MADE-UP.
Below is the resulting contingency table with the actual frequencies.
Childhood Wealth
Totals
Spending in Adulthood
Grew up 'poor'
Grew up 'rich'
1=Frugal spender
fe11=_____
fe12=_____
2=Average spender
fe21=_____
fe22=_____
3=Big spender
fe31=_____
fe32=_____
Totals
Compute the expected frequencies (fe) for the table above. YOU MUST SHOW YOUR WORK.
Formula; Eij = Ti * Tj /N
fe11 = 65*67/140 = 31.11 fe12 = 65*73/140 = 33.89
fe21 = 45*67/140 = 21.54 fe22 = 45*73/140 = 23.46
fe31 = 30*67/140 = 14.36 fe32 = 30*73/140 = 15.64
2. State the null hypothesis and the research hypothesis.
H0: There exists no association between childhood wealth, and spending in their later years
H1: There is an association between childhood wealth, and spending in their later years
3. When I make my final conclusion, I want to be 99% confident, therefore my p-value must be based on a significance level of:
a. 0.1 b.0.5 c. 0.01 (explanation: confidence level = 1 -- significance level) d. 0.05
4. If the p-value I calculate is less than the significance level I choose, what should I do? (Circle One)
(a) Accept the null hypothesis (b) Reject the null hypothesis (c) Neither
5. If I tentatively accept the null hypothesis for the above study (see Table), what does that mean?
According to Gravetter and Wallnau (2009, p. 234), "the null hypothesis and the alternative hypothesis are mutually exclusive and exhaustive." Preliminary acceptance of null hypothesis would, therefore, mean that we are tentatively rejecting the alternative hypothesis
References
Gravetter, F.J. & Wallnau, L.B. (2009). Statistics for the Behavioral Sciences (8th ed.). Belmont, CA: Cengage Learning
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