A researcher is studying the determinants of state-financed welfare programs in the United States such as unemployment compensation and aid to dependent children. She feels that because states in which the average income is high have larger tax revenues, they are better able to afford welfare programs. Therefore, she hypothesizes that the higher the average income in a state, the more welfare programs the state legislature will have adopted. She obtains data pertaining to the average income of the residents of each state (coded low; high) and the number of welfare programs passed by each state legislature (coded few; many). These data yield the following cross-tabulation:

In reporting the results of her study, the researcher comments about the above cross-tabulation: €œBecause more states in which the average income is high (14) have passed many welfare programs than have states in which the average income is low (11), this table provides support for the hypothesis. High average income in a state tends to lead to the passage of welfare programs.€
Do you agree with the conclusion reached by this researcher? Present evidence to support your answer.

Transcribed Image Text:

Average Income Number of Welfare Programs Few Many High 16 14 Low