Refer to Exercise 10.43. In addition to the 1,072 charitable givers who reported that their charitable contributions

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Refer to Exercise 10.43. In addition to the 1,072 charitable givers who reported that their charitable contributions were motivated by tax considerations, another 1,693 givers reported no tax motivation, giving a total sample of 2,765 charitable givers. Of the 1,072 who were motivated by tax considerations, 691 itemized deductions on their income tax returns. Of the 1,693 who were not motivated by tax considerations, 794 itemized deductions.

a. Consider the two categorical variables, tax motivation (yes or no) and itemize deductions (yes or no). Form a 2 × 2 contingency table for these variables.

b. Compute the expected cell counts for the contingency table, part a.

c. Compute the value of x2 for a test of independence.

d. At a = .05, what inference can you make about whether the two variables, tax motivation and itemize deductions, are related for charitable givers?

e. Create a bar graph that will visually support your conclusion in part d.

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Statistics For Business And Economics

ISBN: 9780134506593

13th Edition

Authors: James T. McClave, P. George Benson, Terry Sincich

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