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The human resource manager of a major life insurance company has received complaints from the sales managers regarding the qualifications of the sales staff being employed. The sales managers want more sales staff who are university graduates. The human resource manager wants to determine if there is any relationship between sales performance and degree qualification. In order to test this she use the records from the previous 12 months to classify the performance of all sales staff as either 'satisfactory or 'unsatisfactory'. The frequencies in various categories are show in the table below.
Performance Qualification Graduate Non-graduate Total
Satisfactory 170 310 480
Unsatisfactory 130 290 420
Total 300 600 900
Test at the 5% level of significance if there is any relationship between sales staff qualification and performance.
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