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    Hypothesis Testing: Three Categories

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    1. Group the districts based on the percent of students on welfare: "low" (less than 5 percent), "moderate" (5 up to 10 percent), and "high" (10 percent or more). Conduct a test of hypothesis to determine whether the three categories are equally represented in the sample. Use the .05 significance level.

    2. Identify each district as "small" (less than 1,000 students), "medium" (1,000 up to 3,000), or "large" (more than 3,000 students). Create a table that shows the districts classified by both percent of students on welfare and the size of the district. At the .05 significance level, can we conclude that the two characteristics are related?

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