1.

Use the following contingency table and the chi-square test of independence to determine whether social
class is independent of the number of children in a family. Let α = 0.05.

H0 : there is no relationship between social class and number of children in the family; (null hypothesis)
H1 : there is a relationship between social class and number of children in the family.(alternate hypothesis)

SOCIAL CLASS
No of Children Lower Middle Upper Total
0 7 18 6 31
1 9 38 23 70
2 or 3 34 97 58 189
More than 3 47 31 30 108
Total 97 184 117 398

expected frequencies
No of Children Lower Middle Upper Total
0 7.56 14.33 9.11 31
1 17.06 32.36 20.58 70
2 or 3 46.06 87.38 55.56 189
More than 3 26.32 49.93 31.75 108
Total 97 184 117 398

X2
0.04 0.94 1.06
3.81 0.98 0.28
3.16 1.06 0.11
16.25 7.18 0.1
34.97

df: (4-1)(3-1) = 6
α : 0.05
CV: 12.592

since x2 > CV or x2 = 34.97 > 12.592, we reject the null hypothesis and accept the alternate hypothesis which
conclude that there is a relationship between social class and number of children in the family.
2. A corporation owns several companies. The strategic planner of the corporation believes that amount spent
on advertising is significantly related to total sales. As an aid in long-term planning, he gathers the following
sales and advertising expenditures from several of the companies for 2009 (Php million).

Sales
Advertising Expenditures

10.5 130
18.1 250
12.6 148
4.7 55
21.8 338
60.4 994
37.6 541
6.3 89
17.8 125
43.2 370

H0 : There is no significant relation between amount spent in advertising and the total sales;
H1 : There is significant relation between amount spent in advertising and the total sales;

Advertising
Expenditures Sales rank adv exp rank sales d d2
10.5 130 8 7 1 1
18.1 250 5 5 0 0
12.6 148 7 6 1 1
4.7 55 10 10 0 0
21.8 338 4 4 0 0
60.4 994 1 1 0 0
37.6 541 3 2 1 1
6.3 89 9 9 0 0
17.8 125 6 8 -2 4

rs = 1 – ((6 Σ d2)/(n(n2 – 1)))

= 1 – ((6(8))/(10(102 - 1)))
= 0.9515

At rs = 0.9515, there is strong correlation/relationship between the amount spent in advertising and the total
sales of the company.