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55 or older Total 190 24 1,000 200 28. A sample of employees at a large chemical

ID: 3331589 • Letter: 5

Question



55 or older Total 190 24 1,000 200 28. A sample of employees at a large chemical plant was asked to indicate a preference for one of three pension plans. The results are given in the following table. Does it seem that cGraw-Hill Create Review Copy for Instructor Lynch. Not for distribution. ss Statistics hapter 17 there is a relationship between the pension plan selected and the job classification of the employees? Use the .01 significance level. Plan A 10 19 81 Pension Plan Plan B 13 80 57 Plan C 29 19 Job Class Supervisor Clerical Labor

Explanation / Answer

H0: There is no relationship between the pension plan and job classification

H1: There is relationship between the pension plan and job classification

Let the los be alpha = 1%

The chisquare contribution values are calculated as follows

Degrees of freedom: (3-1)*(3-1) = 4

Test Statistic, X^2: 84.0395
Critical X^2: 13.27672
P-Value: 0.0000

Here P-value < alpha = 0.01, so we reject H0

Thus we conclude that  there is relationship between the pension plan and job classification

The Expected frequencies are Job Class Plan A Plan B Plan C Total Sperivisor 17.333 23.636 11.03 51.999 Clerical 39.333 53.636 25.03 117.999 Labour 53.333 72.727 33.939 159.999 Total 109.999 149.999 69.999 329.997
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