Question

A finance firm wants to know if employment in the transportation, administration, and construction industries is roughly equal. Which type of test would be most appropriate for its investigation?

A) Chi-square test for independence
B) T-test for two independent samples
C) Paired sample t-test
D) Analysis of variance (ANOVA)

Answer 1

The most appropriate test for determining if employment in the transportation, administration, and construction industries is roughly equal is the Chi-square test for independence.

Step-by-step explanation:

The most appropriate test for determining if employment in the transportation, administration, and construction industries is roughly equal is the Chi-square test for independence.

This test is used to assess whether two factors are independent or dependent. It involves creating a contingency table of observed values and comparing them to expected values. The null hypothesis for this test states that the two factors are independent.

By conducting the Chi-square test for independence, the finance firm can determine if there is a relationship between employment in these industries.