speaker who advises managers on how to avoid being unionized claims that only 25% of industrial workers favor union membership, 40% are indifferent, and 35% are opposed.
A speaker who advises managers on how to avoid being unionized claims that only 25% of industrial workers favor union membership, 40% are indifferent, and 35% are opposed. In addition the advisor claims that these opinions are independent of actual union membership. A random sample of 600 industrial workers yields the following data:
| Favor | Indifferent | Opposed | Total |
Members | 140 | 42 | 18 | 200 |
Non-members | 70 | 198 | 132 | 400 |
Total | 210 | 240 | 150 | 600 |
What do you think of the speaker’s claims?
For this you should:
i) Test to see whether or not his claim of 25%, 40% and 35% is correct.
ii) Test the hypothesis of independence.
iii) Calculate percentages of workers in favor of unionization, indifferent, and opposed; separately for members and for non-members. Do the percentages suggest that there is a strong relation between membership and opinion?
iv) Construct confidence intervals for the percentages in part iii) and interpret them.
12 years ago
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