statistic
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Chap 12-*
Chapter 12
Sections 12.1 and 12.3
Chi-Square Tests
Basic Business Statistics
10th Edition
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Chap 12-*
Learning Objectives
In this chapter, you learn:
How and when to use the chi-square test for contingency tables
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Chap 12-*
Contingency Tables
Contingency Tables
- Useful in situations involving two or more variables that are in categories.
- Used to classify sample observations according to two or more characteristics
- Also called a cross-classification table.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Chap 12-*
Contingency Table Example
Left-Handed vs. Gender
Dominant Hand: Left vs. Right
Gender: Male vs. Female
- 2 categories for each variable, so
called a 2 x 2 table
- Suppose we examine a sample of
size 300
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Chap 12-*
Contingency Table Example
Sample results organized in a contingency table:
(continued)
120 Females, 12 were left handed
180 Males, 24 were left handed
sample size = n = 300:
| Gender | Hand Preference | ||
| Left | Right | ||
| Female | 12 | 108 | 120 |
| Male | 24 | 156 | 180 |
| 36 | 264 | 300 |
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Chap 12-*
Hypothesis
- If H0 is true, then the proportion of left-handed females should be the same as the proportion of left-handed males
- The two proportions above should be the same as the proportion of left-handed people overall
H0: π1 = π2 (Proportion of females who are left
handed is equal to the proportion of
males who are left handed)
H1: π1 ≠ π2 (The two proportions are not the same –
Hand preference is not independent
of gender)
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Chap 12-*
Critical Value
2
2U
Decision Rule:
If statistic 2 > 2U, reject H0, otherwise, do not reject H0
The 2 test statistic approximately follows a chi-squared distribution with df = (r-1)(c-1)
r: number of rows
c: number of columns
0
Reject H0
Do not
reject H0
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Chap 12-*
The Chi-Square Test Statistic
- where:
fo = observed frequency in a particular cell
fe = expected frequency based on the total sample
2 for the 2 x 2 case has 1 degree of freedom
The Chi-square test statistic is:
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Chap 12-*
Observed vs. Expected Frequencies
| Gender | Hand Preference | ||
| Left | Right | ||
| Female | Observed = 12 Expected = 14.4 | Observed = 108 Expected = 105.6 | 120 |
| Male | Observed = 24 Expected = 21.6 | Observed = 156 Expected = 158.4 | 180 |
| 36 | 264 | 300 |
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Chap 12-*
Finding Expected Frequencies
- To obtain the expected frequency for left handed females, multiply the average proportion left handed (56/300 = 0.12) by the total number of females
- To obtain the expected frequency for left handed males, multiply the average proportion left handed (0.12) by the total number of males
we expect (.12)(120) = 14.4 females to be left handed
(.12)(180) = 21.6 males to be left handed
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Chap 12-*
The Chi-Square Test Statistic
The test statistic is:
| Gender | Hand Preference | ||
| Left | Right | ||
| Female | Observed = 12 Expected = 14.4 | Observed = 108 Expected = 105.6 | 120 |
| Male | Observed = 24 Expected = 21.6 | Observed = 156 Expected = 158.4 | 180 |
| 36 | 264 | 300 |
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Chap 12-*
Conclusion
Decision Rule:
If 2 > 3.841, reject H0, otherwise, do not reject H0
Here,
2 = 0.7576 < 2U = 3.841,
so we do not reject H0 and conclude that there is not sufficient evidence that the two proportions are different at = 0.05
2
2U=3.841
0
Reject H0
Do not
reject H0
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Chap 12-*
Example: 2 Test of Independence
- Similar to the 2 test for equality of more than two proportions, but extends the concept to contingency tables with r rows and c columns
H0: The two categorical variables are independent
(i.e., there is no relationship between them)
H1: The two categorical variables are dependent
(i.e., there is a relationship between them)
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Chap 12-*
2 Test of Independence
- where:
fo = observed frequency in a particular cell of the r x c table
fe = expected frequency in a particular cell if H0 is true
2 for the r x c case has (r-1)(c-1) degrees of freedom
(Assumed: each cell in the contingency table has expected frequency of at least 1)
The Chi-square test statistic is:
(continued)
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Chap 12-*
Decision Rule
- The decision rule is
If 2 > 2U, reject H0, otherwise, do not reject H0
Where 2U is from the chi-squared distribution with (r – 1)(c – 1) degrees of freedom
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Chap 12-*
Example
- The meal plan selected by 200 students is shown below:
| Class Standing | Number of meals per week | Total | ||
| 20/week | 10/week | none | ||
| Fresh. | 24 | 32 | 14 | 70 |
| Soph. | 22 | 26 | 12 | 60 |
| Junior | 10 | 14 | 6 | 30 |
| Senior | 14 | 16 | 10 | 40 |
| Total | 70 | 88 | 42 | 200 |
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Chap 12-*
Example
- The hypothesis to be tested is:
(continued)
H0: Meal plan and class standing are independent
(i.e., there is no relationship between them)
H1: Meal plan and class standing are dependent
(i.e., there is a relationship between them)
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Chap 12-*
Observed:
Expected cell frequencies if H0 is true:
Example for one cell:
Example:
Expected Cell Frequencies
(continued)
| Class Standing | Number of meals per week | Total | ||
| 20/wk | 10/wk | none | ||
| Fresh. | 24 | 32 | 14 | 70 |
| Soph. | 22 | 26 | 12 | 60 |
| Junior | 10 | 14 | 6 | 30 |
| Senior | 14 | 16 | 10 | 40 |
| Total | 70 | 88 | 42 | 200 |
| Class Standing | Number of meals per week | Total | ||
| 20/wk | 10/wk | none | ||
| Fresh. | 24.5 | 30.8 | 14.7 | 70 |
| Soph. | 21.0 | 26.4 | 12.6 | 60 |
| Junior | 10.5 | 13.2 | 6.3 | 30 |
| Senior | 14.0 | 17.6 | 8.4 | 40 |
| Total | 70 | 88 | 42 | 200 |
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Chap 12-*
Example: The Test Statistic
- The test statistic value is:
(continued)
2U = 12.592 for = 0.05 from the chi-squared distribution with (4 – 1)(3 – 1) = 6 degrees of freedom
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
Chap 12-*
Example:
Decision and Interpretation
(continued)
Decision Rule:
If 2 > 12.592, reject H0, otherwise, do not reject H0
Here,
2 = 0.709 < 2U = 12.592,
so do not reject H0
Conclusion: there is not sufficient evidence that meal plan and class standing are related at = 0.05
2
2U=12.592
0
Reject H0
Do not
reject H0
Basic Business Statistics, 10e © 2006 Prentice-Hall, Inc.
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