I have a data set with a categorical variable $C$ (approx. 8 levels) and a quantitative variable $X$. I suspect that $X$ and $C$ are strongly dependent. How can I verify this hypothesis?
My approach would be to 'bin' $X$ in order to obtain about the same number of categories as for $C$ and then use a test for contingency tables.
Once I have established depedency I would like to find 'the natural order' of the categories of $C$ implied by $X$, or even to assign distances between the levels of $C$, based on the numeric scale of $X$. Can this idea be made rigorous? Does it make sense?