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ANOVA versus Chi Square Test

The researcher wants to determine whether there is a relation between the type of residence owned and the level of the family income. He randomly sampled 100 homeowners and obtained the following data:

Income Level
Condo
Townhouse
Single Family Home

up to 30K
15
9
3

30K-60K
9
7
7

60K-100 K
7
3
17

more than 100K
0
1
22

What type of test would you use to obtain the answer to your research question? Why?

Solution This solution is FREE courtesy of BrainMass!

We will use chi square test. Chi-square Test of Independence tests the association between two categorical variables. Here the categorical variables are Income level and the type of residence.

Chi square test is really just a comparison between expected frequencies and observed frequencies among the cells in a cross tabulation table. The researcher has created a cross tabulation table which can be used for calculating the chi squared value and testing the relationship.