In 1991, the Consumer Bankruptcy Project conducted a study to determine the education levels of people who declare bankruptcy. The percentages are shown in the following table. Also shown in the table is the observed frequency for these education levels from a random sample of individuals who filed for bankruptcy in 2014.

Education Level Probability 1991 (%)

Observed Frequency 2014 No high school diploma 21.8 11 High school diploma 31.7 38 Some college 35.1 56 College diploma 8.6 15 Advanced degree 2.8 5 Total 100 125

a. Using a = 0.05, perform a chi-square test to determine if the probability distribution for the education levels of individuals who filed for bankruptcy changed between 1991 and 2014.

b. Determine the p-value using Excel and interpret its meaning.

c. What conclusions can be drawn about the type of individual who filed for bankruptcy in 2014 vs. the type of individual who filed for bankruptcy in 1991?

AppendixLO1