Board of Directors of Labour Union wishes to sample the opinion of its members before submitting a change in its contribution at a forthcoming annual meeting. Questionnaires are sent to a random sample of 200 members in three union locals. The results of the survey are as follows:
| Union Locals | |||||||||||||
| Reaction | A | B | C | Total | |||||||||
| Favour Change | 35 | 45 | 20 | 100 | |||||||||
| Against Change | 15 | 25 | 16 | 56 | |||||||||
| No Response | 10 | 10 | 24 | 44 | |||||||||
| Total | 60 | 80 | 60 | 200 | |||||||||
Determine the amount of association between the Union locals and their reactions using coefficient of contingency and interpret the result.
To determine the association between Union locals and reactions, we can use the coefficient of contingency, which is a measure of association for categorical variables. The coefficient of contingency (C) is calculated using the formula:
\[ C = \sqrt{\frac{\chi^2}{N}} \]
Where:
- \( \chi^2 \) is the chi-squared statistic for the contingency table.
- \( N \) is the total number of observations.
First, we need to calculate the chi-squared statistic (\( \chi^2 \)) using the formula:
\[ \chi^2 = \sum \frac{(O_{ij} - E_{ij})^2}{E_{ij}} \]
Where:
- \( O_{ij} \) is the observed frequency in cell \( (i,j) \).
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