Edexcel FS1 AS 2021 June — Question 4

Exam BoardEdexcel
ModuleFS1 AS (Further Statistics 1 AS)
Year2021
SessionJune
TopicChi-squared distribution

  1. Charlie carried out a survey on the main type of investment people have.
The contingency table below shows the results of a survey of a random sample of people.
\cline { 3 - 5 } \multicolumn{2}{c|}{}Main type of investment
\cline { 3 - 5 } \multicolumn{2}{c|}{}BondsCashStocks
\multirow{2}{*}{Age}\(25 - 44\)\(a\)\(b - e\)\(e\)
\cline { 2 - 5 }\(45 - 75\)\(c\)\(d - 59\)59
  1. Find an expression, in terms of \(a , b , c\) and \(d\), for the difference between the observed and the expected value \(( O - E )\) for the group whose main type of investment is Bonds and are aged 45-75
    Express your answer as a single fraction in its simplest form. Given that \(\sum \frac { ( O - E ) ^ { 2 } } { E } = 9.62\) for this information,
  2. test, at the \(5 \%\) level of significance, whether or not there is evidence of an association between the age of a person and the main type of investment they have. You should state your hypotheses, critical value and conclusion clearly. You may assume that no cells need to be combined.