A company has been accused of age discrimination in hiring for operator position

Question

A company has been accused of age discrimination in hiring for operator positions. Lawyers for both sides look at data on applicants for the past three years. They compare hiring rates for applicants younger than 40 years and those 40 years or older. Use a significance test to determine whether or not the data indicate that there is a relationship between age and whether or not an applicant is hired.

Find the test statistic. Give your answer to 3 decimal places

Find the P-Value of the test. Give your answer to 3 decimal places

Explanation / Answer

applying chi square test of independence:

test statsistc =7.868

for (row-1)*(column-1)=(2-1)*(2-1)=1 degree of freedom and abvoe test statitic ; p value =0.005

( please revert if there are other subparts)

Observed Oi Hired not hired Total <40 82 1160 1242 >=40 2 168 170 Total 84 1328 1412 Expected Ei=?row*?column/?total Hired not hired Total <40 73.8867 1168.113 1242 >=40 10.113 159.887 170 Total 84 1328 1412 chi square =(Oi-Ei)2/Ei Hired not hired Total <40 0.89 0.06 0.947 >=40 6.51 0.412 6.921 Total 7.40 0.47 7.868

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