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 0.10 level of significance to determine if there is a relationship.

MATLAB: An Introduction with Applications
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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 0.10 level of significance to determine if there is a relationship.

  Less than 5 weeks 5-14 weeks 15-26 weeks
Transportation 89 115 77
Information 64 65 43
Financial 80 113 114

 

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 

 H0:H0: The length of unemployment is independent of the type of industry.

 HA:HA: The length of unemployment is dependent of the type of industry. (claim)

 

Since αα = 0.10 the critical value is 7.779

The test value is:  (round to 3 decimal places)

The p-value is  (round to 3 decimal places)

 

So the decision is to 

 

  • reject H0H0
  • do not reject H0H0

 

 

Thus the final conclusion is

 

  • There is not enough evidence to support the claim that the length of unemployment is dependent of the type of industry.
  • There is enough evidence to support the claim that the length of unemployment is dependent of the type of industry.
  • There is not enough evidence to reject the claim that the length of unemployment is dependent of the type of industry.
  • There is enough evidence to reject the claim that the length of unemployment is dependent of the type of industry. 
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