Question

A business school conducted a survey of companies in its state. It mailed a questionnaire to 200 small companies, 200 medium-sized companies, and 200 large companies. The rate of non response is important in deciding how reliable survey results are. Here are the data on response to this survey:

	Small	Medium	Large
Response	124	80	41
No Response	76	120	159

Test whether there is an association between the size of a company and the response rate at a .05 level of significance. Be sure to include the hypotheses, the test statistic, critical value, drawing of your distribution, and conclusion in the context of the problem.

Answer 1

Observed Frequencies

	B1	B2	B3	Total
A1	124	80	41	245
A2	76	120	159	355
Total	200	200	200	600

Expected Frequencies

	B1	B2	B3	Total
A1	81.6667	81.6667	81.6667	245
A2	118.3333	118.3333	118.3333	355
Total	200	200	200	600

Compute Chi-square

from the above calculatios