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In: Statistics and Probability

One of the concerns of labor economists is that in economic recessions, older people may be...

One of the concerns of labor economists is that in economic recessions, older people may be more likely to be laid off than workers under the age of 40. Federal and state laws prohibit this from happening, but does it anyway? The Federal government collects data on what they call “reductions in force” (RFI); for a recent company that experienced a layoff, 42 of the 50 employees who were “released” were over 40 while 764 of the 1267 who were not released were over 40.

What is your impression of the data? Then perform the chi-square test for (how many??) degrees of freedom. What can you say with 95% confidence about the possibility of age discrimination in RIFs?

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