Consider the following hypothesis: "There is no relationship between income and amount of money spent on food." If the hypothesis presented is tested using a. 05 alpha level and the resulting p value is. 01, which of the following interpretations of the results is most appropriate? Group of answer choices There is no relationship between income and food expenditures There is a relationship between income and food expenditures As income increases, food expenditures increase As income decreases, the percentage of income spent on food increases None of the above

Question

Mathematics

Jairo Colon

30 January, 01:05

Consider the following hypothesis: "There is no relationship between income and amount of money spent on food." If the hypothesis presented is tested using a. 05 alpha level and the resulting p value is. 01, which of the following interpretations of the results is most appropriate? Group of answer choices There is no relationship between income and food expenditures There is a relationship between income and food expenditures As income increases, food expenditures increase As income decreases, the percentage of income spent on food increases None of the above

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Answers (1)

Know the Answer?

Matthias Schmidt · Answer 1

Correct option:

"There is a relationship between income and food expenditures"

Step-by-step explanation:

Te hypothesis that is tested is:

H₀: There is no relationship between income and amount of money spent on food.

Hₐ: There is a significant relationship between income and amount of money spent on food.

The significance level of the test is:

α = 0.05

The decision rule based on the p-value of the test is:

If the p-value of the test statistic is less than the significance level then the null hypothesis is rejected. And if the p-value of the test statistic is more than the significance level then the null hypothesis is failed to be rejected.

The p-value of the test is computed as,

p-value = 0.01.

The p-value = 0.01 < α = 0.05.

The null hypothesis will be rejected at 5% level of significance.

Conclusion:

As the null hypothesis is rejected it can be concluded that there is a significant relationship between income and amount of money spent on food.

Thus, the correct option is:

"There is a relationship between income and food expenditures."