Explain the value of the chi-square test statistic

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A survey of industrial salespeople who are either self-employed, work for small, medium-sized, or large firms revealed the following with respect to incomes:

Of those who earn less than $20,000, 9 are self-employed, 12 are employed by small firms, 40 by medium size firms, and 89 by large firms.

Of those who earn $20,000 to $39,999, 11 are self-employed, 10 are employed by small firms, 45 by medium size firms, and 104 by large firms.

Of those who earn $40,000 or more, 10 are self-employed, 13 are employed by small firms, 50 by medium size firms, and 107 by large firms.

Using the .05 level of significance, use a chi-square test to test the hypothesis that there is no relationship between the income level of the industrial salespeople and their employment status. Be sure to state the critical value, the value of the Chi-square test statistic, and your decision (accept/reject)

Reference no: EM13121172

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