## Elementary Statistics: A Step-by-Step Approach with Formula Card 9th Edition

a. State the hypotheses and identify the claim. $H_o:$ At α= 0.05, there is no relationship between the age of the investor and the way the money would be invested. $H_a:$ At α= 0.05, there is a relationship between the age of the investor and the way the money would be invested. b. Find the critical value(s). $\alpha=0.05, df=1\times4=4, \chi^2_c=9.488$ c. Compute the test value. Calculate the expected values using the correct formula. Age45 28.18181818 15.45454545 15.45454545 9.545454545 31.36363636 Age65 33.81818182 18.54545455 18.54545455 11.45454545 37.63636364 Calculate $\chi^2=\sum\frac{(O-E)^2}{E}=28.0$ d. Make the decision. Since $\chi^2>9,488$ we reject the null hypothesis. e. Summarize the results. At α= 0.05, there is a relationship between the age of the investor and the way the money would be invested.