Question

2. In one of the firms, the staffs are working in 4 different units. All of them using a statistical package to do their job. The CEO of the firm claims that there is a relationship between the statistical package and units of the firm. The units in the firm are Human Resources, Information Technologies, Accounting, and Finance. The packages used in the firm are EViews, Stata, SPSS Test this claim with 0.05 significance level by using the correct test and showing each calculation step in Ms Word file. You have to use the same steps which we used in the lecture. You can find the steps from lecture slides or recorded video. SEND IT IN MS WORD FORMAT NOT SCREENSHOT

a) Find the expected value for each cell by showing each step of the calculations. (10 points) If you don’t show each step, you will get 0

b) Find the Chi-Square calculated by showing each step of the calculations. (20 points) If you don’t show each step, you will get 0

c) Find the Chi-Square Table value (10 points)

d) Write your decision (10 points)

	EView	Stata	SPSS
HM	40	40	30
IT	50	80	20
Accounting	60	40	10
Finance	50	20	30

Answer 1

(a)

H0:Null Hypothesis: there is no relationship between the statistical package and units of the firm.

HA: Alternative Hypothesis: there is a relationship between the statistical package and units of the firm. (Claim)

Observed Frequencies:

	EView	Stata	SPSS	Total
HM	40	40	30	110
IT	50	80	20	150
Accounting	60	40	10	110
Finance	50	20	30	100
Total	200	180	90	470

the expected value for each cell is found as follows:

Expected Frequencies:

	EView	Stata	SPSS	Total
HM	200X110/470=46.809	180X110/470=42.128	90X110/470=21.064	110
IT	200X150/470=63.830	180X150/470=57.447	90X150/470=28.723	150
Accounting	200X110/470=46.809	180X110/470=42.128	90X110/470=21.064	110
Finance	200X100/470=42.553	180X100/470=38.298	90X100/470=19.149	100
Total	200	180	90	470

(b)

Chi Square is found as follows:

Observed (O)	Expected (E)	(O - E)2/E
40	46.809	(40-46.809)2/46.809=0.990
40	42.128	(40-42.128)2/42.128=0.107
30	21.064	(30-21.064)2/21.064=3.791
50	63.830	(50-63.830)2/63.830=2.996
80	57.447	(80-57.447)2/57.447=8.854
20	28.723	(20-28.723)2/28.723=2.649
60	46.809	(60-46.809)2/46.809=3.718
40	42.128	(40-42.128)2/42.128=0.107
10	21.064	(10-21.064)2/21.064=5.811
50	42.553	(50-42.553)2/42.553=1.303
20	38.298	(20-38.298)2/38.298=8.742
30	19.149	(30-10.149)2/10.149=6.149
Total = Chi Square =		45.220

(c)

df = (r - 1) X(c - 1) = (4 - 1) X (3- 1) = 6

= 0.05

the Chi-Square Table value = 12.592

(d)

Since calculated value of = 45.220 is greater than critical value of = 12.592, the difference is significant. Reject null hypothesis.

Conclusion:
The data support the claim that there is a relationship between the statistical package and units of the firm.