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You believe there may be a relationship between a household's income and whether it possesses more than one car. You have conducted a survey of 100 families and you have discovered the following:
Low income families with one car: 40
Low income families with more than one car: 18
High income families with one car: 12
High income families with more than one car: 30
a. State the null and alternate hypotheses in plain English sentences (not equations).
b. What is the calculated chi-squared value? Show your calculations.
c. The tabled chi-squared value for 5% significance and one degree of freedom is 3.84. Can you reject the null hypothesis? Why or why not?
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