After a large fund drive to the Boston City Library, the following information was obtained from a random sample of contributors to the library fund. Using a 1% level of significance, test the claim that the amount contributed to the library fund is independent of ethnic group.

Number of People Making Contribution

Ethnic Group $1-50 $51-100 $101-150 $151-200 Over $200 Row Total

A 77 63 54 39 18 251

B 90 48 76 26 24 264

C 73 67 59 37 30 266

D 108 82 70 50 30 340

Column Total 348 260 259 152 102 1121

Required:

a. What is the level of significance?

b. Find the value of the chi-square statistic for the sample.

c. Find or estimate the P-value of the sample test statistic.

d. Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis of independence?