Question 1091409: Please help me solve statistics question;
A trainee risk manager for an investment bank has been told that the level of risk is directly related to the industry type (manufacturing, retail, financial). For the data presented in table below, test if level of risk is associated with industrial class. Use 5% level of significance.
Industrial class
Level of risk Manufacturing Retail Financial
Low 81 38 16
Moderate 46 42 33
high 22 26 29
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! A trainee risk manager for an investment bank has been told that the level of risk is directly related to the industry type (manufacturing, retail, financial). For the data presented in table below, test if level of risk is associated with industrial class. Use 5% level of significance.
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Ho: row and column factors are independent
Ha: row and column factors are dependent
Industrial class
Level of risk Manufacturing Retail Financial
Low 81 38 16
Moderate 46 42 33
high 22 26 29
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I ran the Chi^2 Test on my TI-84 to get
Chi^2 = 28.88
and p = 8.28x10^-6
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Conclusion:: Since p is less than 0.05, reject Ho
Conclusion:: The row and column factors are dependent
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Cheers,
Stan H.
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