Is the length of time of unemployment related to the type of industry? A random sample of unemployed workers from three different work sectors yielded the following data. Perform a hypothesis test at 0.01 level of significance to determine if there is a relationship. Less than 5 weeks 5-14 weeks 15-26 weeks Transportation 89 114 81 Information 58 70 55 Financial 81 113 112 What are the expected numbers? (round to 3 decimal places) Less than 5 weeks 5-14 weeks 15-26 weeks Transportation Information Financial The hypotheses are Họ: The length of unemployment is independent of the type of industry. HA: The length of unemployment is dependent of the type of industry. (claim) Since a = 0.01 the critical value is 13.277 The test value is: (round to 3 decimal places) The p-value is (round to 3 decimal places) So the decision is to O eject Ho O do not reject Ho Thus the final conclusion is O There is enough evidence to support the claim that the length of unemployment is dependent of the type of industry. O There is not enough evidence to support the claim that the length of unemployment is dependent of the type of industry. O There is not enough evidence to reject the claim that the length of unemployment is dependent of the type of industry. O There is enough evidence to reject the claim that the length of unemployment is dependent of the type of industry.

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**Analysis of Unemployment Duration by Industry Type**

This exercise investigates whether the length of unemployment is related to the type of industry. Data from a random sample of unemployed workers across three sectors—Transportation, Information, and Financial—are analyzed using a hypothesis test at a 0.01 significance level to determine any possible relationships.

**Data Table:**
- **Transportation:** Less than 5 weeks (89), 5-14 weeks (114), 15-26 weeks (81)
- **Information:** Less than 5 weeks (58), 5-14 weeks (70), 15-26 weeks (55)
- **Financial:** Less than 5 weeks (81), 5-14 weeks (113), 15-26 weeks (112)

**Expected Numbers Table:**
- Calculate expected numbers for each category by rounding to three decimal places.

**Hypotheses:**
- Null Hypothesis (\(H_0\)): The length of unemployment is independent of the type of industry.
- Alternative Hypothesis (\(H_A\)): The length of unemployment is dependent on the type of industry.

**Statistical Analysis:**
- **Significance Level (\(\alpha\))**: 0.01 with a critical value of 13.277.
- **Test Value**: To be calculated and rounded to three decimal places.
- **p-value**: To be calculated and rounded to three decimal places.

**Decision:**
- Choose whether to reject or not reject \(H_0\) based on the test results.

**Conclusion:**
- Determine whether there is sufficient evidence to support or reject the dependency between unemployment length and industry, considering the given options:

   - There is enough evidence to support the claim that unemployment duration is industry-dependent.
   - There is not enough evidence to support dependency.
   - Insufficient evidence to reject dependency.
   - Sufficient evidence to reject dependency. 

This structured approach ensures a thorough understanding of the relationship between unemployment duration and industry type.
Transcribed Image Text:**Analysis of Unemployment Duration by Industry Type** This exercise investigates whether the length of unemployment is related to the type of industry. Data from a random sample of unemployed workers across three sectors—Transportation, Information, and Financial—are analyzed using a hypothesis test at a 0.01 significance level to determine any possible relationships. **Data Table:** - **Transportation:** Less than 5 weeks (89), 5-14 weeks (114), 15-26 weeks (81) - **Information:** Less than 5 weeks (58), 5-14 weeks (70), 15-26 weeks (55) - **Financial:** Less than 5 weeks (81), 5-14 weeks (113), 15-26 weeks (112) **Expected Numbers Table:** - Calculate expected numbers for each category by rounding to three decimal places. **Hypotheses:** - Null Hypothesis (\(H_0\)): The length of unemployment is independent of the type of industry. - Alternative Hypothesis (\(H_A\)): The length of unemployment is dependent on the type of industry. **Statistical Analysis:** - **Significance Level (\(\alpha\))**: 0.01 with a critical value of 13.277. - **Test Value**: To be calculated and rounded to three decimal places. - **p-value**: To be calculated and rounded to three decimal places. **Decision:** - Choose whether to reject or not reject \(H_0\) based on the test results. **Conclusion:** - Determine whether there is sufficient evidence to support or reject the dependency between unemployment length and industry, considering the given options: - There is enough evidence to support the claim that unemployment duration is industry-dependent. - There is not enough evidence to support dependency. - Insufficient evidence to reject dependency. - Sufficient evidence to reject dependency. This structured approach ensures a thorough understanding of the relationship between unemployment duration and industry type.
Expert Solution
Step 1
  Less than 5 Weeks 5-14 weeks 15-26 weeks Total
Transportation 89 114 81 284
Information 58 70 55 183
Financial 81 113 112 306
Total 228 297 248 773
         

Expected value of a cell = Row sub total * Column sub totalGrand total

 

Example ( E(Transportation , less than 5 weeks) = 284*22877383.767

 

Similarly for others

 

df = (# rows -1 ) (# column - 1) 

    = (3-1)(3-1) = 4 

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