Question

In: Math

Suppose a company surveyed the work preferences and attitudes of 1,006 working adults spread over three...

Suppose a company surveyed the work preferences and attitudes of 1,006 working adults spread over three generations: baby boomers, Generation X, and millennials. In one question, individuals were asked if they would leave their current job to make more money at another job. The sample data are summarized in the following table.

Leave Job for
More Money?
Generation
Baby Boomer Generation X Millennial
Yes 119 153 173
No 197 184 180

Conduct a test of independence to determine whether interest in leaving a current job for more money is independent of employee generation.

State the null and alternative hypotheses.

H0: Interest in leaving job for more money is not mutually exclusive of the employee generation.
Ha: Interest in leaving job for more money is mutually exclusive of the employee generation.

H0: Interest in leaving job for more money is independent of the employee generation.
Ha: Interest in leaving job for more money is not independent of the employee generation.    

H0: Interest in leaving job for more money is not independent of the employee generation.
Ha: Interest in leaving job for more money is independent of the employee generation.

H0: Interest in leaving job for more money is mutually exclusive of the employee generation.
Ha: Interest in leaving job for more money is not mutually exclusive of the employee generation.

Find the value of the test statistic. (Round your answer to two decimal places.)

What is the p-value? (Round your answer to four decimal places.)

Using a 0.05 level of significance, what is your conclusion?

Do not reject H0. We conclude that interest in leaving a job for more money is not independent of the employee generation.

Reject H0. We conclude that interest in leaving a job for more money is not independent of the employee generation.     

Do not reject H0. We cannot conclude that interest in leaving a job for more money is independent of the employee generation.

Reject H0. We cannot conclude that interest in leaving a job for more money is independent of the employee generation.

Solutions

Expert Solution

H0: Interest in leaving job for more money is independent of the employee generation.
Ha: Interest in leaving job for more money is not independent of the employee generation.  

Test Statistic

O : Observed Frequency

E: Expected Frequency

Given,

Generation
Leave Job for More Money? Baby Boomer Generation X Millennial Row Total
Yes 119 153 173 445
No 197 184 180 561
Column Total 316 337 353 1006

Expected Frequency:E

Leave Job for More Money? Baby Boomer Generation X Millennial Row Total
Yes (445*316) / 1006 (445*337) / 1006 (445*353) / 1006 445
No (561*316) / 1006 (561*337) / 1006 (561*353) / 1006 561
Column Total 316 337 353 1006

Expected Frequency:E

Generation
Leave Job for More Money? Baby Boomer Generation X Millennial Row Total
Yes 139.7813 149.0706 156.1481 445
No 176.2187 187.9294 196.8519 561
Column Total 316 337 353 1006
O E O-E (O-E)2 (O-E)2/E
119 139.7813 -20.7813 431.8629 3.0896
153 149.0706 3.9294 15.4404 0.1036
173 156.1481 16.8519 283.9862 1.8187
197 176.2187 20.7813 431.8629 2.4507
184 187.9294 -3.9294 15.4404 0.0822
180 196.8519 -16.8519 283.9862 1.4426
Total 8.9874

Value of the test statistic = 8.99

Degrees of freedom = (Number of rows -1)x(Number of columns - 1) = (2-1)x(3-1)=2

For 3 degrees of freedom,

p-value = 0.0112

level of significance: =0.05

As p-value : 0.0112 < level of significance: :0.05; Do not reject Ho

Do not Reject Ho : We can not conclude that interest in leaving a job is not independent of the employee generation


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