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INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS<br />

Table 2: Frequency of field work<br />

JUNE 2011<br />

VOL 3, NO 2<br />

Category Observed Expected Residual<br />

Frequency frequency<br />

O<br />

N<br />

Strongly Agree 2 8.4 -6.4<br />

Agree 1 8.4 -7.4<br />

Strongly Disagree 16 8.4 7.6<br />

Disagree 22 8.4 13.6<br />

Undecided 1 8.4 -7.4<br />

42<br />

Category Observed Expected O-E (O-E) 2 (O-E) 2<br />

Frequency frequency N<br />

O<br />

N<br />

Strongly Agree 2 8.4 -6.4 40.96 4.88<br />

Agree 1 8.4 -7.4 54.76 6.52<br />

Strongly Disagree 16 8.4 7.6 57.76 6.88<br />

Disagree 22 8.4 13.6 184.96 22.02<br />

Undecided 1 8.4 -7.4 54.76 6.52<br />

42 46.82<br />

Source:Field Survey,2009<br />

Summary:<br />

Chi-Square: 46.82<br />

Level of Significance: 0.05<br />

Degree of Freedom: 4<br />

Tabulated: 9.49<br />

Decision: At the level of significance 0.05 and degree of freedom 4, the critical value is 46.82<br />

against the tabulated 9.49 which signifies the respondents’ opinions that high operating costs have<br />

negative impact on profitability and return on capital in service industry which call for the<br />

outsourcing of the product that is a drain to the profitability of the organization.<br />

Hypothesis 2: Ineffective Utilization of Resources has no impact on sub-optimality in production in<br />

the Nigerian service industry.<br />

COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 84

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