A researcher plans to ask employees whether they favor, oppose, or are indifferent about a change in the company retirement program. Formulate a hypothesis for a chi-square test and the way the variable would be created.
As we know that the chi-square test is used to test the relationship between the two variable or test the significant difference between observed and expected frequencies. Here, we see that a researcher plans to ask employees whether they favor, oppose, or are indifferent about a change in the company retirement program. So, variable is "change in the company retirement program" and we recorded the frequency of employees whether they favor, oppose, or are indifferent.
The null and alternative hypothesis is
H0: there is no significant difference between observed and expected frequencies
H1: there is a significant difference between observed and expected frequencies
Based on the outcome of the chi-square test we will either reject or fail to reject the null hypothesis.
Then, chi-square statistic is determined as
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