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 | 124 | 154 | 167 |
No | 202 | 185 | 174 |
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 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 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 mutually exclusive of the employee
generation.
Ha: Interest in leaving job for more money is
not mutually exclusive 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.
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?
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.Do not reject H0. We conclude that interest in leaving a job for more money is not 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
Applying chi square test:
Expected | Ei=row total*column total/grand total | Baby Boomer | Gen X | Millennial | Total |
Yes | 144.2048 | 149.9553 | 150.8400 | 445 | |
No | 181.7952 | 189.0447 | 190.1600 | 561 | |
total | 326 | 339 | 341 | 1006 | |
chi square χ2 | =(Oi-Ei)2/Ei | Baby Boomer | Gen X | Millennial | Total |
Yes | 2.8309 | 0.1091 | 1.7313 | 4.6713 | |
No | 2.2456 | 0.0865 | 1.3733 | 3.7054 | |
total | 5.0765 | 0.1956 | 3.1046 | 8.3767 |
test statistic X2 =8.38
p value = 0.0152
Reject H0. We conclude that interest in leaving a job for more money is not independent of the employee generation
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