cation.com sich 12 and 15) Exercise 15-60 (LO15-6) A sample of employees at a la

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cation.com sich 12 and 15) Exercise 15-60 (LO15-6) 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 there is a relationship between the pension plan selected and the job classification of the employees? Use the 0.01 significance level. Supervisor 4 Clerical State the decision rule. Use 0.01 significance level. (Round your answer to 3 decimal places) Hy: Pension plan preference and job class are not related H:Pension plan preference and job class are related Compute the value of chi-square. (Round your answer to 3 decimal places) What is your decision regarding

Explanation / Answer

here degree of freedom=(rows-1)*(column-1) =(3-1)*(3-1)=4

for 0.01 level and 4 degree of freedom critical value of chi square =13.277

reject Ho if chi square >13.277

applying chi square test of independence:

chi square =7.435

fail to reject Ho : thre is no relationship between pension plan......

Observed O plan A plan B plan C Total supervisor 43 43 43 129 clerical 46 46 37 129 labour 66 39 33 138 Total 155 128 113 396 Expected E=rowtotal*column total/grand total plan A plan B plan C Total supervisor 50.492 41.697 36.811 129 clerical 50.492 41.697 36.811 129 labour 54.015 44.606 39.379 138 Total 155 128 113 396 chi square =(O-E)^2/E plan A plan B plan C Total supervisor 1.1118 0.0407 1.0407 2.193 clerical 0.3997 0.4441 0.0010 0.845 labour 2.6592 0.7046 1.0333 4.397 Total 4.171 1.189 2.075 7.435

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