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Problem Set: Chi Square Test of Independence
3)
Income Category
1 2 3 4
Owns a Car No 65 48 5 4
Yes 83 72 11 12
Income Category
1 (E) 2 (E) 3 (E) 4 (E) Total
Owns a Car No 60.19 (1) 48.8 (2) 6.51 (3) 6.51 (4) 122
Yes 87.81 (5) 71.2 (6) 9.49 (7) 9.49 (8) 178
Total 148 120 16 16 300
χ2
0.38 + 0.013+ 0.35 + 0.97 + 0.26 + 0.011 +0.24 + 0.67 = 2.89
Since the computed χ2 = 2.89 is less than the critical value 7.815 then the null hypothesis is not
rejected at 5% level. We conclude that there no sufficient evidence to prove that there is a
significant relationship between Car ownership and Income.