Question
A consultant wishes to know whether the proportion of innovativ e executives depends on whether the executives have a graduate diploma in business a dministration
A consultant wishes to know whether the proportion of innovativ
e executives depends
on whether the executives have a graduate diploma in business a
dministration
(GDBA), a master's degree in business administration (MBA), or
do not hold any of
these degrees in business administration (NODBA). He selects a
random sample from
each of the three populations of executives and analyses the pe
rformance of every
selected executive. On the basis
of these analyses, the consult
ant categorizes each
executive as innovative or not innovative. The results are as f
ollows.
Degree in Business Administration?
Innovative?
NODBA GDBA
MBA
Yes
105
120
35
No
145
50
10
(a) There are two variables in this study, the performance of t
he executives
(innovative or not) and whether an executive has a graduate dip
loma in business
administration, a master's degree in business administration, o
r none. What type
of variables are they and what are their levels of measurement?
Explain your
answers.
(b) Assuming that these data had been generated by a proper mul
tinomial
experiment, which test can the consultant use to see whether th
e three
populations of executives categorized by their qualifications d
iffer with respect to
the proportion of innovative exec
utives? Explain your choice.
(c) Perform the test you chose in part (b) manually at the 5% s
ignificance level. State
the hypotheses, the decision rule, calculate the test statistic
showing the details of
your calculations, make a statistical decision with reference t
o the proper critical
value and draw your conclusion. Based on the relevant critical
value table, what
can you tell about the
p
-value of your test?
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