Test the level of significance


Discussion:

Q: A random sample of 100 people were asked if their finances were worse, the same or better than this time last year. The sample was split according to their annual income and the results are shown in the table below.

Finances
Annual income     Worse Same Better

Under £ 15000         14    11      9
£ 15000 and above  17     20     29

Test, at the 5% level of significance, whether or not the relative state of their finances is independent of their income range. State your hypotheses and show your working clearly.

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Basic Statistics: Test the level of significance
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