In: Math
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.
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