Test of Independence · Exercise 34

Read the statement and decide whether it is true or false.

provides a recent survey of the youngest online entrepreneurs whose net worth is estimated at one million dollars or more. Their ages range from 17 to 30. Each cell in the table illustrates the number of entrepreneurs who correspond to the specific age group and their net worth. Are the ages and net worth independent? Perform a test of independence at the 5% significance level.

$$\begin{array}{ccccc}\text{Age Group Net Worth Value (in millions of US dollars)}& \text{1–5}& \text{6–24}& \text{≥25}& \text{Row Total}\\ \text{17–25}& \text{8}& \text{7}& \text{5}& \text{20}\\ \text{26–30}& \text{6}& \text{5}& \text{9}& \text{20}\\ \text{Column Total}& \text{14}& \text{12}& \text{14}& \text{40}\end{array}$$

This is an open-ended exercise: its source gives no single answer.

OpenStax, Introductory Statistics 2e · §11.3 Test of Independence · Exercise 34