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Chi-square test: Retirees from health care organizations

Finding and retaining good health care professionals requires an agressive 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 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 re-employed, she found that 38% were re-employed by their former organizations, 32% were employed by a different organization, 23% were freelancing or consulting, and 7% had formed their own companies or where 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 her 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

Step 2: Set the level of Significance

Step 3: Determine the type of test

Step 4: Calculate the observed value of the test statistics

Step 5: Calculate the critical value of the test statistics and decision rule.

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.