Question

5) A company wants to determine if its employees have any preference among 5 different 5) health plans which it offers to them. A sample of 200 employees provided the data below. Find the P-value to test the claim that the probabilities show no preference. Use α = 0.01.

plan	1	2	3	4	5
Employees	55	32	65	30	18

I have given you the observed frequencies, you must find the expected frequencies, hint: We would expect 20% to be in each plan, so for example we would expect 20% x 200 or 40 in plan 1 and so forth.

STEP 1: Hypothesis: Ho ___________________ vs H1: ____________________

STEP 2: Restate the level of significance: ________________

STEP 4: p-value: _________________ Use the appropriate test from your calculator.

STEP 5: Conclusion.

Answer 1

= proportion of employees choosing plan '', where = 1, 2, 3, 4, 5.
STEP 1: versus at least one of the 's value is different from 0.20.
STEP 2: .
STEP 3 and STEP 4:

(Please round the p-value to the required number of decimal places.)
STEP 5: Since the p-value is very much less than the 0.01 significance level, we reject and conclude that there is no significant evidence to support the claim that the employees show no preference.