document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=141131>Question 141131</A>This question is from textbook <A HREF=http://www.amazon.com/exec/obidos/ASIN/9780072966930/algebrahomeworkh>Applied Statistics in Business and Economics</A><BR>\n" );
document.write( ": <I><SPAN STYLE=\"word-break: break-all;\"> In this exercises, include MegaStat, Excel, or MINITAB exhibits to support your calculations.<BR>\n" );
document.write( "State the hypotheses, show how the degrees of freedom are calculated, find the critical value of chisquare<BR>\n" );
document.write( "from Appendix E or from Excel’s function =CHIINV(alpha, deg_freedom), and interpret the p-value.<BR>\n" );
document.write( "Tell whether the conclusion is sensitive to the level of significance chosen, identify cells that contribute<BR>\n" );
document.write( "the most to the chi-square test statistic, and check for small expected frequencies. If necessary, you can<BR>\n" );
document.write( "calculate the p-value by using Excel’s function =CHIDIST(test statistic,deg_freedom). Note: Exercises marked<BR>\n" );
document.write( "* are harder or require optional material.\r<BR>\n" );
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document.write( " Employees of Axolotl Corporation were sampled at random from pay records and asked to complete<BR>\n" );
document.write( "an anonymous job satisfaction survey, yielding the tabulation shown. Research question: At<BR>\n" );
document.write( "&#945; = .05, is job satisfaction independent of pay category? Employees<BR>\n" );
document.write( "688 Applied Statistics in Business and Economics<BR>\n" );
document.write( "Pay Type Satisfied Neutral Dissatisfied Total<BR>\n" );
document.write( "Salaried  20  13  2  35<BR>\n" );
document.write( "Hourly   135 127 58 320<BR>\n" );
document.write( "Total    155 140 60 355\r<BR>\n" );
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document.write( " </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #102813 by </B><A HREF=/tutors/aboutme.mpl?userid=stanbon><B>stanbon(75887)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=stanbon><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/images/nopicture.jpg><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=102813\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> Employees of Axolotl Corporation were sampled at random from pay records and asked to complete<BR>\n" );
document.write( "an anonymous job satisfaction survey, yielding the tabulation shown. Research question: At<BR>\n" );
document.write( "&#945; = .05, is job satisfaction independent of pay category? Employees<BR>\n" );
document.write( "688 Applied Statistics in Business and Economics<BR>\n" );
document.write( "Pay Type Satisfied Neutral Dissatisfied Total<BR>\n" );
document.write( "Salaried 20 13 2 35<BR>\n" );
document.write( "Hourly 135 127 58 320<BR>\n" );
document.write( "Total 155 140 60 355 <BR>\n" );
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document.write( "Ho: Pay Type and job satisfaction are independent factors<BR>\n" );
document.write( "Ha: They are dependent<BR>\n" );
document.write( "I ran a Chi-Sq Test on the 2 x 3 data set and got the following <BR>\n" );
document.write( "output:<BR>\n" );
document.write( "Test statistic: Chi-Sq = 4.54309...<BR>\n" );
document.write( "p-value = 0.10315..<BR>\n" );
document.write( "df=(2-1)(3-1) = 2<BR>\n" );
document.write( "----------------------<BR>\n" );
document.write( "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.<BR>\n" );
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document.write( "p-value = P(4.54309 < Chi-Sq < 100). It is the probability of having <BR>\n" );
document.write( "test results that give stronger evidence for rejecting Ho.<BR>\n" );
document.write( "------------<BR>\n" );
document.write( "Tell whether the conclusion is sensitive to the level of significance chosen,<BR>\n" );
document.write( "Test results would fail to reject Ho if alpha was set at any value less <BR>\n" );
document.write( "than 10.3%, such as 10%, 5% or 1%, which are the usual values chosen.<BR>\n" );
document.write( "Conclusion: Since P-value is greater than 5%, fail to reject Ho.<BR>\n" );
document.write( "Pay type and job satisfaction are independent.\r<BR>\n" );
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document.write( "identify cells that contribute the most to the chi-square test statistic, and check for small expected frequencies.<BR>\n" );
document.write( "--<BR>\n" );
document.write( "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<BR>\n" );
document.write( "=========================================<BR>\n" );
document.write( "Cheers,<BR>\n" );
document.write( "Stan H. </SPAN>\n" );
document.write( "</TD></TR></TABLE>\n" );