EBK STATISTICS FOR BUSINESS AND ECONOMI
13th Edition
ISBN: 8220103633567
Author: Sincich
Publisher: PEARSON
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Chapter 10.2, Problem 10.10ACB
Offshoring companies. “Offshoring” is a term that describes a company’s practice of relocating jobs and/or production to another country to reduce labor costs. The Journal of Applied Business Research (January/February 2011) published a study on the phenomenon of offshoring and how prevalent it is worldwide. The article included the results from a recent survey of CEOs at U.S. firms, where each CEO was asked about his or her firm’s position on offshoring. A summary of the results (similar to the actual study) is shown in the accompanying table.
| Firm’s Position | Number of Firms |
| Currently offshoring | 126 |
| Not currently offshoring, but plan to do so in the future | 72 |
| Offshored in the past, but no more | 30 |
| Offshoring not applicable | 372 |
| Total | 600 |
- a. Identify the qualitative variable of interest (and its levels) for this study.
- b. Are the proportions of U.S. firms in the four offshoring position categories significantly different? Conduct the appropriate chi-square test using α = .05.
- c. Construct a 95% confidence interval for the proportion of U.S. firms who are currently offshoring. Interpret the result.
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Chapter 10 Solutions
EBK STATISTICS FOR BUSINESS AND ECONOMI
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