As an alternative to flextime, many companies allow employees to do some of thei
ID: 3437689 • Letter: A
Question
As an alternative to flextime, many companies allow employees to do some of their work at home.
Individuals in a random sample of 300 workers were classified according to salary and number of workdays
per week spent at home.
Workdays at Home Per Week
Salary Less than one Atleast one,but not all All at home
Under $25,000 38 16 14
$25,000 to $49,999 54 26 12
$50,000 to $74,999 35 22 9
Above $75,000 33 29 12
Do the data present suffcient evidence to indicate that salary is dependant on the number of workdays
spent at home? Test using alpha = 0.05. (The Chi-Square Test of Independence)
Explanation / Answer
Doing an Expected Value Chart,
36.26666667 21.08 10.65333333
49.06666667 28.52 14.41333333
35.2 20.46 10.34
39.46666667 22.94 11.59333333
Using chi^2 = Sum[(O - E)^2/E],
chi^2 = 6.446545846
With df = (a - 1)(b - 1), where a and b are the number of categories of each variable,
a = 3
b = 4
df = 6
Thus, the critical value is
significance level = 0.05
chi^2(critical) = 12.59158724
Thus, we FAIL TO REJECT THE NULL HYPOTHESIS.
the data DOES NOT present suffcient evidence to indicate that salary is dependent on the number of workdays spent at home.
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