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9.1 Introduction
9.1.1 Describe the properties and uses of the Chi-Square Distribution.
As the illustration shows, when the number of degrees of freedom is small, the
distributions positively skewed, but as the number of degrees of freedom increases it
becomes symmetrical and approaches the normal distribution.
Goodness-of-Fit Tests
In the goodness-of-fit test the 𝛾 2 distribution is used to determine how well an observed
set of observations fits an expected set of observations.
Step 2: Select the Level of Significance - This is the probability of committing a Type I
error.
Step 4: Formulate the decision rule. Find the critical value of 𝛾 2 . This critical value is
found in the Appendix H, found by locating the number of degrees of freedom in the left
column and moving horizontally to the right to read the value associated with the level of
significance.
Step 5: Compute the value of the Chi-square and make your decision. Page 443 of your
text illustrates the procedure for computing the 𝛾 2 value.
It is not necessary that the expected frequencies be equal to apply the goodness-of-fit
test. The text illustrates the case of unequal frequencies and also gives a practical use of
chi-square.
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Examples:
1. A student sells baseball cards for a day. At the end of the day she records the sales of
the six types of cards in a chart as show below.
At the 0.05 significance level, can she conclude the sales are not the same for each player?
2. A human resources manager records the number of sick days over a week.
The following data was gathered.
At the 0.01 significance level, can she conclude that there is no difference
in the absenteeism throughout the six-day workweek?
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Contingency Tables
The distribution is also used to determine if there is a relationship between two or more
criteria of classifications.
For example, we may be interested in whether or not there is a relationship between job
advancement within a company and the gender of the employee.
Contingency Table: A table made up of rows and columns. Each box is referred to as a cell.
The usual five-step hypothesis testing procedure is followed. The expected frequency, fe ,
is computed by the formula:
(rowtotal)(columntotal )
i.e. fe
grandtotal
The number of degrees of freedom used to find the critical value for 𝛾 2 is :
There is a limitation to the use of the 𝛾 2 distribution The value of fe should be at least 5
for each cell (box). This requirement is to prevent any cell from carrying an inordinate
amount of weight and causing the null hypothesis to be rejected.
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Examples:
High Low
income income
Played
the
lottery in 21 46
the last
month
Did not
play the
lottery in 19 14
the last
month
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Category f0
A 10
B 20
C 30
Category f0
A 10
B 20
C 30
D 20
5. Classic Golf, Inc. manages five courses in the Jacksonville, Florida, area. The
Director wishes to study the number of rounds of golf played per weekday
at the five courses. He gathered the following sample information.
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Day Rounds
Monday 124
Tuesday 74
Wednesday 104
Thursday 98
Friday 120
6. The director of advertising for the Carolina Sun Times, the largest
newspaper in the Carolinas, is studying the relationship between the type of
community in which a subscriber resides and the section of the newspaper
he or she reads first. For a sample of readers, she collected the following
sample information.
National
News Sports Comics
City 170 124 90
Suburb 120 112 100
Rural 130 90 88
Regular Advertised
Price Special Price
Undercharge 20 10
Overcharge 15 30
Correct Price 200 225