70 Not too happy 60 Pretty happy Very happy 50 40 Percentage of people reporting happiness 30 20 10 0 Under $20,000 $20,000–$49,000 $50,000–$89,000 $90,000 and over Family income (2004 dollars) (b) Happiness versus family income
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From the graph, we can see the following: - Under $20,000: around 60% - $20,000 - $49,000: around 50% - $50,000 - $89,000: around 45% - $90,000 and over: around 40% Show more…
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There have been numerous attempts that relate happiness with income. In a recent survey, 290 individuals were asked to evaluate their state of happiness (Happy or Not Happy) and income (Low, Medium, or High). The accompanying table shows a portion of the data. (You may find it useful to reference the appropriate table: chi-square table or F table) a. Use the data to construct a contingency table. b. Specify the competing hypotheses to determine whether happiness is related to income: Ho: Income and Happiness are independent HA: Income and Happiness are dependent c-1. Calculate the value of the test statistic. (Round the intermediate calculations to at least 4 decimal places and final answer to 3 decimal places.) Test Statistic:
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