12.A sample of human resource executives were asked how their company planned to
ID: 3429058 • Letter: 1
Question
12.A sample of human resource executives were asked how their company planned to change their work force over the next 12 months. a categorical response variable showed 3 options: add employees, no change, lay off employees. another categorical variable indicated if the company was private or public. Sample data for 180 companies are summarized as followed
(private) add employees 37 no change 19 lay off employees 16
(public add employees 32 no change 34 lay off employees 42
a.)conduct a test of independence to determine if the employment plan for the next 12 months is independent on the type of company.at a .05 level significance what is your conclusion?
b.)discuss any differences in the employment plans for private and public companies over the next 12 months?
Explanation / Answer
Null hypothesis H0 : Employment plan for the next 12 months is independent on the type of company
Alternative hypothesis: HA : Employment plan for the next 12 months is not independent on the type of company
Chi-Square Test
Observed Frequencies
Column variable
Calculations
Row variable
C1
C2
C3
Total
fo-fe
private
37
19
16
72
9.4
-2.2
-7.2
public
32
34
42
108
-9.4
2.2
7.2
Total
69
53
58
180
Expected Frequencies
Column variable
Row variable
C1
C2
C3
Total
(fo-fe)^2/fe
private
27.6
21.2
23.2
72
3.2014
0.2283
2.2345
public
41.4
31.8
34.8
108
2.1343
0.1522
1.4897
Total
69
53
58
180
Data
Level of Significance
0.05
Number of Rows
2
Number of Columns
3
Degrees of Freedom
2
Results
Critical Value
5.991
Chi-Square Test Statistic
9.4404
Calculated chi square value > table value.
The null hypothesis is rejected.
We conclude that employment plan for the next 12 months is not independent on the type of company
b.)discuss any differences in the employment plans for private and public companies over the next 12 months?
Since employment plan for the next 12 months is dependent on the type of company, public and private sector companies should take different plans for the next 12 months.
Chi-Square Test
Observed Frequencies
Column variable
Calculations
Row variable
C1
C2
C3
Total
fo-fe
private
37
19
16
72
9.4
-2.2
-7.2
public
32
34
42
108
-9.4
2.2
7.2
Total
69
53
58
180
Expected Frequencies
Column variable
Row variable
C1
C2
C3
Total
(fo-fe)^2/fe
private
27.6
21.2
23.2
72
3.2014
0.2283
2.2345
public
41.4
31.8
34.8
108
2.1343
0.1522
1.4897
Total
69
53
58
180
Data
Level of Significance
0.05
Number of Rows
2
Number of Columns
3
Degrees of Freedom
2
Results
Critical Value
5.991
Chi-Square Test Statistic
9.4404
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