A trainee risk manager for an investment bank has been told that the level of risk is related directly to the industry type (manufacturing, retail, and fi nancial). For the data presented in the contingency table (Table 7.1) analyse whether or not perceived risk is dependent upon the type of industry identified (assess at 5%)? If the two variables are associated then what is the form of the association?

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Level of risk Low Moderate High Table 7.1 Manufacturing 81 46 22 Industrial class Retail 38 42 26 Financial 16 33 29