Refer to the data for problem 5. 

a. What does the null hypothesis of independence claim, in practical terms, for this situation? 

b. How many managers responding “Worse” would you expect to find in this sample if response were independent of employee classification? 

c. Find the table of expected counts, assuming independence. 

d. Find the chi-squared statistic. 

e. How many degrees of freedom does the chi-squared test have?

Data from Problem 5

Your firm is considering expansion to a nearby city. A survey of employees in that city, asked to respond to the question “Will business conditions in this area get better, stay the same, or get worse?” produced the data set shown in Table 17.4.3.

TABLE 17.4.3 Survey Responses Regarding Future Business Conditions Other Employees Total Managers Better 185 23 Same 336 37 161 Worse 11 Not sure 15 87 Total