3. We find that the data is given in the form of Count / frequencies for each category. The given data has 2 variables namely,
a. Gender b.Support Higher tax To Reduce Pollution
with 2 and 3 categories respectively. Since, the variables are categorical, the level of measurement for both the variables would be "Nominal".
4. Computing the percentage in each cell, i.e. dividing the frequency in each cell by the Grand total = 315 + 495 = 810:
To find the gender wise probabilities, we divide each cell frequency by its corresponding column totals:
For cell 1: Probability = 167 / 315 = 0.53. We get the Probability table as:
Looking at the percentages, little difference in the categories is observed. We might not have sufficient evidence to claim a significant relationship between the two variables.
5. To test whether there exist a significant relationship between the two (nominal) variables, we may go for a Chi square test of association.
To test: H0: No significant relation exist between Gender and opinion on whether they support Higher tax to Reduce pollution Vs Ha: A significant relation exist between Gender and their opinion on whether they support Higher tax to Reduce pollution.
The appropriate test statistic here, would be Chi Square, given by,
with critical region given by,
Where Oi = Observed Frequency and Ei = Expected frequency
Expected frequencies can be computed for each cell by obtaining the product of the corresponding row and column totals and dividing it by the Grand Total:
Substituting the values in the test statistic formula, we get
Comparing the test statistic obtained with its critical value (Obtained from chi square tables for (No. of rows - 1)(No. of Columns - 1) = (2-1)(2-1) = 1 degree of freedom, at say, level of significance:
Since, does not lie in the critical / rejection region, we fail to reject H0 at 5% level of significance.
We may conclude that, the given data does not provide sufficient evidence to claim that there exist a significant relation between Gender and their opinion on whether they support Higher tax to Reduce pollution.
Let's suppose we are concerned about the future environment of Canada. We conduct a survey of a sample of 810 to ask people whether they would agree or disagree to increase taxes in order to redu...