In: Statistics and Probability
The last time that information on employees working at this bank was collected, the number of months of previous work experience was distributed such that 15% of employees had a less than 2 years of experience, 25% had between 2 and 5 years of experience, 20% had more than 5 years and up to 10 years of previous work experience, and 40% had more than 10 years of experience. Verify at a 0.05 level of significance if the current data presents the same distribution. What is your conclusion?
Current data (n=93): Number of years of experience
0,44,5,6,8,0,0,5,75,52,8,52,70,6,11,11,63,144,163,228,381,214,318,96,36,59,115,165,123,18,102,127,90,190,107,173,228,26,36,38,82,169,244,24,49,51,122,97,196,133,55,90,117,51,61,241,121,79,209,87,231,12,14,180,315,29,7,38,113,18,359,36,320,24,32,49,56,252,272,25,36,56,64,108,46,72,64,84,216,42,175,132,55
Category | Observed Frequency (O) | Proportion, p | Expected Frequency (E) | (O-E)²/E |
Less than 2 years(i | 16 | 0.15 | 93 * 0.15 = 13.95 | (16 - 13.95)²/13.95 = 0.3013 |
2 - 5 years | 26 | 0.25 | 93 * 0.25 = 23.25 | (26 - 23.25)²/23.25 = 0.3253 |
5 - 10 years | 21 | 0.2 | 93 * 0.2 = 18.6 | (21 - 18.6)²/18.6 = 0.3097 |
More than 10 years | 30 | 0.4 | 93 * 0.4 = 37.2 | (30 - 37.2)²/37.2 = 1.3935 |
Total | 93 | 1.00 | 93 | 2.3297 |
Null and Alternative hypothesis:
Ho: Proportions are same.
H1: Proportions are different.
Test statistic:
χ² = ∑ ((O-E)²/E) = 2.3297
df = n-1 = 3
Critical value:
χ²α = CHISQ.INV.RT(0.05, 3) = 7.8147
p-value:
p-value = CHISQ.DIST.RT(2.3297, 3) = 0.5068
Decision:
p-value > α, Do not reject the null hypothesis
There is not enough evidence to reject the claim that the current
data presents the same distribution at 0.05 significance level.