Question 141131
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.