You have been asked to ascertain whether there is a relationship between income level and the...

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Statistics

  1. You have been asked to ascertain whether there is arelationship between income level and the amount of money donatedto the campaign. Sample data concerning these two categoricalvariables is given in appendix three below. The numbers in thetable represent the numbers of supporters in various incomecategories who have donated certain amounts of money. At both the2% and 5% levels of significance, is there evidence of astatistical relationship between income level and amount of moneydonated to the campaign?

                                                           Income Level

Amount Donated <20K [20K,40)[40K,60K) [60K,80K) ≥80K

[$0,$50)                    35       30            18            10            22                      

[$50,$100                 12       25            26            9             18                      

[$100,$150)              6        20            27            7              5                       

[$150,$200)              7        16            25            10             8                       

[$200,$250)              9        8             11            16             7                                  

[$250,$300)             10       7              8             19            13                      

≥$300                        17       9              8             14            19

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