SOLUTION: In this exercises, include MegaStat, Excel, or MINITAB exhibits to support your calculations. State the hypotheses, show how the degrees of freedom are calculated, find the critic

Question 141131This question is from textbook Applied Statistics in Business and Economics
: In this exercises, include MegaStat, Excel, or MINITAB exhibits to support your calculations.
State the hypotheses, show how the degrees of freedom are calculated, find the critical value of chisquare
from Appendix E or from Excel�s function =CHIINV(alpha, deg_freedom), and interpret the p-value.
Tell whether the conclusion is sensitive to the level of significance chosen, identify cells that contribute
the most to the chi-square test statistic, and check for small expected frequencies. If necessary, you can
calculate the p-value by using Excel�s function =CHIDIST(test statistic,deg_freedom). Note: Exercises marked
* are harder or require optional material.
Employees of Axolotl Corporation were sampled at random from pay records and asked to complete
an anonymous job satisfaction survey, yielding the tabulation shown. Research question: At
α = .05, is job satisfaction independent of pay category? Employees
688 Applied Statistics in Business and Economics
Pay Type Satisfied Neutral Dissatisfied Total
Salaried 20 13 2 35
Hourly 135 127 58 320
Total 155 140 60 355

This question is from textbook Applied Statistics in Business and Economics

Answer by stanbon(75887) (Show Source): You can put this solution on YOUR website!
Employees of Axolotl Corporation were sampled at random from pay records and asked to complete
an anonymous job satisfaction survey, yielding the tabulation shown. Research question: At
α = .05, is job satisfaction independent of pay category? Employees
688 Applied Statistics in Business and Economics
Pay Type Satisfied Neutral Dissatisfied Total
Salaried 20 13 2 35
Hourly 135 127 58 320
Total 155 140 60 355
----------------------------
Ho: Pay Type and job satisfaction are independent factors
Ha: They are dependent
I ran a Chi-Sq Test on the 2 x 3 data set and got the following
output:
Test statistic: Chi-Sq = 4.54309...
p-value = 0.10315..
df=(2-1)(3-1) = 2
----------------------
State the hypotheses, show how the degrees of freedom are calculated, find the critical value of chisquare from Appendix E or from Excel�s function =CHIINV(alpha, deg_freedom), and interpret the p-value.
--------------
p-value = P(4.54309 < Chi-Sq < 100). It is the probability of having
test results that give stronger evidence for rejecting Ho.
------------
Tell whether the conclusion is sensitive to the level of significance chosen,
Test results would fail to reject Ho if alpha was set at any value less
than 10.3%, such as 10%, 5% or 1%, which are the usual values chosen.
Conclusion: Since P-value is greater than 5%, fail to reject Ho.
Pay type and job satisfaction are independent.
------------------------
identify cells that contribute the most to the chi-square test statistic, and check for small expected frequencies.
--
Most significant contribution to the size of Chi-Sq are from (1,1),(2,1), and (3,3) where (o-e)^2/e differences are greatest
=========================================
Cheers,
Stan H.
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