Edexcel S3 Specimen — Question 5

Exam BoardEdexcel
ModuleS3 (Statistics 3)
SessionSpecimen
TopicChi-squared distribution

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.
\backslashbox{Annual income}{Finances}WorseSameBetter
Under £15 00014119
£15000 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.
\includegraphics[max width=\textwidth, alt={}, center]{304e58fa-eb82-4e2d-83f4-848f3eb461c8-15_2576_1774_141_159}