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Chi-square Test for Goodness of Fit: Health Plans

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A company wants to determine if its employees have any preference among 5 different health plans. A sample of 200 employees provided the data below. Test the claim that there is no preference. Use α = 0.01. Two decimal places.

Plan 1 2 3 4 5
Employees 30 65 18 32 55

Based on the results from above question, What is your conclusion? Would you reject the null? Why or why not? What is the critical value at 0.01?

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The solution provides step by step method for the calculation of chi square test of goodness of fit. Formula for the calculation and Interpretations of the results are also included. Interactive excel sheet is included. The user can edit the inputs and obtain the complete results for a new set of data.

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