S3 June 2010 Q5

EdexcelOld spec10 marksIncludes hypothesis testingChi-Squared Tests

5. A random sample of 100 people were asked if their finances were worse, the same or better than this time last year. The sample was split according to their annual income and the results are shown in the table below.

Finances
Annual income
WorseSameBetter
Under £15 00014119
£15 000 and above172029

Test, at the 5% level of significance, whether or not the relative state of their finances is independent of their income range. State your hypotheses and show your working clearly. (10)