The General Social Survey contains measures of respondents' general happiness (happy) as well as their job satisfaction satjob CAUTION: Notice how these variables are coded - this matters for how you will interpret your results. You may even consider recoding them to help yourself interpret the results.
A) Produce a contingency table of happiness by income (using the three level measure of income, income06_3). Your table should show the percentages of respondents in each category of happiness by level of income. Conduct a χ^2 test of independence. describe how to interpret the test statistic and its associated p-value. What can you conclude about the relationship between income and happiness?
B) Conduct a γ test of the relationship between income and happiness. Note that STATA reports the standard error for the gamma statistic as the ASE, which stands for the asymptotic standard error; this standard error can be used in tests of the gamma statistic. What does this allow you to conclude that the test in part A did not allow?
C) Conduct a γ test of the relationship between income and job satisfaction. Would you consider this a strong or weak relationship? describe.