The Wall Street Journal Annual Corporate Perceptions Study surveyed readers and asked how they rated the quality of management and the reputation of the company for more than 250 worldwide corporations. Both the quality of management and the reputation of the company were rated on a categorical scale of excellent, good, and fair categorical. Assume the sample data for 200 respondents below applies to this study.

a. Use a .05 level of significance and test for independence of the quality of management and the reputation of the company. What is the p-value and what is your conclusion??

b. If there is a dependence or association between the two ratings, discuss and use probabilities to justify your answer.

Transcribed Image Text:

Reputation of Company Excellent Good Quality of Management Excellent Good Fair Fair 25 40 5 10 15 35 25 35 10