Many companies outsource segments of their business to external providers, such as information technology (IT) and human resources (HR). The data below show the types of outsourcing decisions made by a representative sample of companies from two industry sectors. Do these data highlight significant differences between companies in the financial and industrial goods sectors with regard to their outsourcing decisions? Complete parts a through e below. B) Find the expected counts for each cell. C) State the hypotheses. D) Test an appropriate hypothesis and state your results. E) Interpret the meaning of the results and state the conclusion. - IT_Only HR_Only Both_IT_and_HR Financial 1611 630 123 Industrial_Goods 1271 441 103
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Step 1
Step 1: Calculate the expected counts for each cell using the formula: Expected Count = (row total * column total) / grand total For the cell IT_Only in the Financial sector: Expected Count = (1744 * 2885) / 2885 = 1744 Similarly, calculate the expected counts Show more…
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*Abstract*: The United States has trained some of the world's best computer programmers and technology experts. Despite all of this training, many businesses do not have a full understanding of information technology. As the importance of technology in the business world grows, many companies are wasting money on extensive technology projects. When problems arise, they expect that further investment will solve these issues. To prevent such problems, many companies have begun to outsource these functions in an effort to reduce costs and improve performance. The majority of these outsourced information technology and call center jobs are going to low-wage countries, such as India and China where English-speaking college graduates are being hired at substantially lower wages. The purpose of this study is to evaluate the positive and negative aspects of offshore outsourcing with a focus on the outsourcing markets in India and China, arguably the two most popular destinations for outsourcers. The cost savings associated with offshore outsourcing will be evaluated in relation to the security risks and other weakness of offshore outsourcing. In addition, an analysis of the number of jobs sent overseas versus the number of jobs created in the United States will be used to assess the effects that outsourcing is having on the American economy and job market. Finally, the value of jobs lost from the American economy will be compared to the value of jobs created. The goal of these analyses is to create a clear picture of this increasingly popular business strategy.
In an effort to cut costs and improve profits, any US companies have been turning to outsourcing. In fact, according to Purchasing magazine, 51% of companies surveyed outsourced some part of their manufacturing process in the past two to three years. Suppose 545 of these companies are contacted. a. What is the probability percentage that 340 or more companies outsourced some part of their manufacturing process in the past two or three years? Round the percent to two decimal places. b. What is the probability percentage that 280 or more companies outsourced some part of their manufacturing process in the past two or three years? Round the percent to two decimal place. c. What is the probability percentage that 46% or less of these companies outsourced some part of their manufacturing process in the past two or three years? Round the percent to two decimal places.
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