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.
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
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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 =
Example ( E(Transportation , less than 5 weeks) = = 83.767
Similarly for others
df = (# rows -1 ) (# column - 1)
= (3-1)(3-1) = 4
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