1. A social scientist sampled 140 people and classified them according to income level and whether or not they played a state lottery in the last month. The sample information is reported below. Is it reasonable to conclude that playing the lottery is related to income level? Use the .05 significance level.
Income
| Low | Middle | High | Total | |
| Played | 46 | 28 | 21 | 95 |
| Did not play | 14 | 12 | 19 | 45 |
| Total | 60 | 40 | 40 | 140 |
(a) What is this table called?
(b) State the null hypothesis and the alternate hypothesis.
(c) What is the decision rule?
(d) Determine the value of chi-square.
(e) Make a decision on the null hypothesis. Interpret the result.
2. What is of more value to the corporate world –basic, fundamental, or applied research? Justify your reasoning!
3. Distinguish between secondary and primary methods of data collection. Is it possible to use secondary data methods as substitutes of primary methods? Justify your answer with suitable illustrations.
4. What is a systematic sample? How is it selected? What are the advantages and disadvantages of a
systematic sample?
5. Discuss the applications of rating scales in various functional areas of management.
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