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7. (20 points) Many companies have chosen to outsource segments of their business to external providers in order to cut costs and improve quality

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7. (20 points) Many companies have chosen to outsource segments of their business to external providers in order to cut costs and improve quality and/or efficiencies. Common business segments that are outsourced include information technology (IT) and human resources (HR). The data below show the types of outsourcing decisions made (no outsourcing, IT only, HR only, both IT and HR) by a sample of companies from various industry sectors: No It HR Outsourcing Both IT Only Only and HR HealthCare 1469 6500 3950 1042 Industry Financial 283 1259 782 201 Sector Industrial Goods 330 1400 870 223 Consumer Goods 102 453 305 72 Do these data highlight significant differences in outsourcing by industry sector? Do a complete hypoth- esis test with = 0.05.

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