A Deloitte employment survey asked a sample of human resource executives how their company planned to change its workforce over the next 12 months. A categorical response variable showed three options: the company plans to hire and add to the number of employees, the company plans no change in the number of employees, or the company plans to lay off and reduce the number of employees. Another categorical variable indicated if the company was private or public. Sample data for 180 companies are summarized as follows.
Employment Plan | Company | |
---|---|---|
Private | Public | |
Add Employees | 37 | 32 |
No Change | 19 | 34 |
Lay Off Employees | 16 | 42 |
(a)
Conduct a test of independence to determine if the employment plan for the next 12 months is independent of the type of company.
State the null and alternative hypotheses.
H0: Employment plan is not mutually
exclusive from the type of company.
Ha: Employment plan is mutually exclusive from
the type of company.H0: Employment plan is
mutually exclusive from the type of company.
Ha: Employment plan is not mutually exclusive
from the type of
company. H0: Employment
plan is independent of the type of company.
Ha: Employment plan is not independent of the
type of company.H0: Employment plan is not
independent of the type of company.
Ha: Employment plan is independent of the type
of company.
Find the value of the test statistic. (Round your answer to three decimal places.)
Find the p-value. (Round your answer to four decimal places.)
p-value =
At a 0.05 level of significance, what is your conclusion?
Do not reject H0. We cannot conclude that the employment plan and the type of company are not independent.Do not reject H0. We cannot conclude that the employment plan and the type of company are independent. Reject H0. We conclude that the employment plan is independent of the type of company.Reject H0. We conclude that the employment plan is not independent of the type of company.
(b) Discuss any differences in the employment plans for private and public companies over the next 12 months. (Round your numeric answers to two decimal places.)
Employment opportunities look to be much better for public companies, while private companies have the greater proportions of "no change" and "lay off employees" planned.Employment opportunities look to be about the same for both public and private companies, with high proportions of "add employees" planned for both. Employment opportunities look to be much better for private companies, while public companies have the greater proportions of "no change" and "lay off employees" planned.Employment opportunities look to be about the same for both public and private companies, with high proportions of "no change" and "lay off employees" planned for both.
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