Past exam of the mathematics course of the University of Cambridge / 2019 / ii / Paper 1 / 13J / c / Solution

The null hypothesis is that price and score are independent, equivalently that the independence log-linear model for a two-way contingency table is correct. Against the saturated alternative, the reported Poisson deviance is the likelihood-ratio test statisticUnder the null and the usual large-sample regularity assumptions, Wilks theorem givesThe observations must be independent, the cell probabilities must not lie on the boundary of the parameter space, and the expected counts must be large enough for the chi-squared asymptotic approximation. The fitted counts are either $31/3$ or $28/3$, so the customary expected-count check is comfortably satisfied. Since(equivalently, the p-value is about $0.329$), we do not reject the null at the $1\%$ significance level. The data provide no significant lack of fit for independence.