Test of Independence · Exercise 34

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

provides results of 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 percent significance level.

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

OpenStax, Statistics · §11.3 Test of Independence · Exercise 34