Samples of human resource executives were asked how their company planned to change their work force over the next 12 months. A categorical response variable showed 3 options: add employees, no change, lay off employees. Another categorical variable indicated if the company was private or public. Sample data for 180 companies are summarized as followed
(Private) add employees 37 no change 19 lay off employees 16
(Public add employees 32 no change 34 lay off employees 42
a. conduct a test of independence to determine if the employment plan for the next 12 months is independent on the type of company at a .05 level significance what is your conclusion?
b. discuss any differences in the employment plans for private and public companies over the next 12 months