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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

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