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    Chi-square test: Retirees from health care organizations

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    Finding and retaining good health care professionals requires an aggressive recruitment effort. Since the demand for health care professionals is growing and the supply of these workers is not keeping pace, an untapped source of workers is retired employees who may be interested in returning to work in a limited capacity. Nicole is the HR recruitment manager of a major medical center. After doing some research on retirees that have been employed by a different organization, 23% were freelancing or consulting, and 7% had formed their own companies or were self-employed.
    To see if her recruitment efforts were consistent with national averages, she selected a random sample of her company's retired employees and surveyed them to see where they are working. Of the 300 that reported they were re-employed, the distribution of their employment is provided. At the .05 level, is the distribution of the retirees in the organization are the same as the national average? Use the five-step hypothesis test to test the assumption that the retirees from her organization are the same as the national average. Show your work or provide output.

    Re-employed with company 0.38 122
    Employed somewhere else 0.32 85
    Consulting 0.23 76
    Self-employed 0.07 17

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    Solution Summary

    The solution provides step by step method for the calculation of chi square test statistic. 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.