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Test of Goodness of Fit

- A chi-square goodness-of-fit test is used to determine if observed frequencies fit expected frequencies based on theoretical probabilities. - It involves calculating observed and expected frequencies, a chi-square test statistic, degrees of freedom, and a critical value to determine if the null hypothesis that the frequencies are equal can be rejected. - Two examples apply this test to survey data on coffee drinking habits and store preferences, calculating test statistics that exceed critical values and allowing the null hypotheses to be rejected.

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Sunil Kumar
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420 views3 pages

Test of Goodness of Fit

- A chi-square goodness-of-fit test is used to determine if observed frequencies fit expected frequencies based on theoretical probabilities. - It involves calculating observed and expected frequencies, a chi-square test statistic, degrees of freedom, and a critical value to determine if the null hypothesis that the frequencies are equal can be rejected. - Two examples apply this test to survey data on coffee drinking habits and store preferences, calculating test statistics that exceed critical values and allowing the null hypotheses to be rejected.

Uploaded by

Sunil Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Chi-Square Tests

(Goodness of Fit Test)


QTT201: Tutorial 4/9/2020 (Dr. Sunil Kumar: 25179)
In this section, we consider experiments with multiple outcomes. The probability of each
outcome is fixed.
Definition: A chi-square goodness-of-fit test is used to test whether a frequency distribution
obtained experimentally fits an “expected” frequency distribution that is based on the theoretical
or previously known probability of each outcome.
An experiment is conducted in which a simple random sample is taken from a population, and
each member of the population is grouped into exactly one of k categories.
Step 1: The observed frequencies are calculated for the sample.
Step 2: The expected frequencies are obtained from previous knowledge (or belief) or
probability theory. In order to proceed to the next step, it is necessary that each expected
frequency is at least 5.
Step 3: A hypothesis test is performed:
(i) The null hypothesis H0: the population frequencies are equal to the expected
frequencies.
(ii) The alternative hypothesis, Ha: the null hypothesis is false (what does this imply
about the population frequencies?).
(iii) α is the level of significance.
(iv) The degrees of freedom: k − 1.
(v) A test statistic is calculated:

(vi) From α and k − 1, a critical value is determined from the chi-square table.
(vii) Reject H0 if χ 2 is larger than the critical value (right-tailed test).

Example 1: Researchers have conducted a survey of 1600 coffee drinkers asking how much
coffee they drink in order to confirm previous studies. Previous studies have indicated that
72% of Americans drink coffee. The results of previous studies (left) and the survey (right)
are below. At α = 0.05, is there enough evidence to conclude that the distributions are the
same?
(i) The null hypothesis H0:the population frequencies are equal to the expected
frequencies (to be calculated below).
(ii) The alternative hypothesis, Ha: the null hypothesis is false.
(iii) α = 0.05.
(iv) The degrees of freedom: k − 1 = 4 − 1 = 3.
(v) The test statistic can be calculated using a table:

(vi) From α = 0.05 and k − 1 = 3, the critical value is 7.815.


(vii) Is there enough evidence to reject H0? Since χ 2 ≈ 8.483 > 7.815, there is enough
statistical evidence to reject the null hypothesis and to believe that the old
percentages no longer hold.

Example 2:
A department store, A, has four competitors: B, C, D, and E. Store A hires a consultant to
determine if the percentage of shoppers who prefer each of the five stores is the same. A survey
of 1100 randomly selected shoppers is conducted, and the results about which one of the stores
shoppers prefer are below. Is there enough evidence using a significance level α = 0.05 to
conclude that the proportions are really the same?
(i) The null hypothesis H0:the population frequencies are equal to the expected frequencies
(to be calculated below).
(ii) The alternative hypothesis, Ha: the null hypothesis is false.
(iii) α = 0.05.
(iv) The degrees of freedom: k − 1 = 5 − 1 = 4.
(v) The test statistic can be calculated using a table:

(vi) From α = 0.05 and k − 1 = 4, the critical value is 9.488.

(vii) Is there enough evidence to reject H0? Since χ 2 ≈ 14.618 > 9.488, there is enough
statistical evidence to reject the null hypothesis and to believe that customers do not
prefer each of the five stores equally.

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