A fictitious city of 1,000,000 residents has three neighborhoods: A, B, and C. You are interested...

A fictitious city of 1,000,000 residents has three neighborhoods: A, B, and C. You are interested in understanding whether a person’s residential location is related to their occupation. You take a random sample of 400 residents and classify their occupation as white collar (service), blue collar (manufacturing), or green collar (environment). The data are tabulated as follows. Conduct a Chi Sq. test, State your null and alternative hypothesis. Provide your test statistic, critical value (at 0.05 significance), and decision (reject or fail to reject).

	A	B	C	Total
White Collar	76	51	88	215
Blue Collar	21	38	28	87
Green Collar	19	18	61	98
Total	116	107	177	400

Solutions

Expert Solution

Hypothesis,

H0 : person’s residential location is not related to their occupation.

H1 : person’s residential location is related to their occupation.

Conclusion:

As null hypothesis is rejected at 5% los, we conclude that the person’s residential location is related to their occupation.

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