Answer:
employment plan for the next 12 months is not independent of the type of company
Step-by-step explanation:
H0 : employment plan for the next 12 months is independent of the type of company
H1 : employment plan for the next 12 months is not independent of the type of company
The Chisquare statistic, χ² :
χ² = (observed - Expected)²/ Expected
Given the data:
Observed values :
_________________ Company
Emp plan ________ private _____ public _total
Add employees _____ 37 ________ 32 __ 69
No change__________19 ________ 34 __53
Layoff employees ____ 16 ________ 42__58
Total ______________72 ________108 _ 180
The expected value counts :
(Row total * column total) / grand total
Expected Values:
27.6 ___41.4
21.2 ___ 31.8
23.2 ___34.8
Chi-Squared Values:
3.20145 ___2.1343
0.228302__ 0.152201
2.23448 ____1.48965
χ² = (3.20145 + 2.1343 + 0.228302 + 0.152201 + 2.23448 + 1.48965)
χ² = 9.440383
Degree of freedom, df (row - 1) * (column - 1) = (3-1) * (2 - 1) = 2 * 1 = 2
Pvalue from Chisquare statistic, df = 2
Pvalue = 0.008913
Since ;
Pvalue < α ; We reject the null and conclude that employment plan for the next 12 months is not independent of the type of company.
