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Chapter Four
Chi-Square Distri
butions (x )
4.1.
Areas of appli
cation
2
In previous chapter
s, we have based o
2 ur decisions on the
assumption that
the population was
normally distributed.
When this assump
tion about the
population cannot
be made, then it
becomes necessar
y to use other
procedures. One of
the tests used in su
ch situations is kno
wn as Chi square
(X ) test. This test is
good for nominal or
ordinal scale of mea
surement.

X distribution has
the following char
acteristics
1. It involves square
d observations and
hence it is always p
ositive.
2. The distribution is
4.2. Tests for independenceskewed
between tworight
to the variables
so can
The chi-square independence test that be
its used
skewness
to test the independence of
is positive.
two variables.
3. Similar to t dist
Steps: ribution, there is
a family of chi-
square distributions.
There is a particular
distribution for each
degree of freedom.
The degree of freed
om (df) are calculate
d as follows;

a. df=(k-1), where K
is the number of cat
egories in one samp
le test
b. df=(K-1)(r-
1),where K is the nu
mber of columns an
d r is the number of
rows in a cross cl
assification table(c
ontingency table) f
or various
categories of two or
more independent s
amples.

1. State the null an


d alternative hypoth
esis

1
H0: the column variable is independent of the row variable
H1: the column variable is not independent of the row variable
2. Select a random sample and record the observed frequencies
3. Compute expected frequencies
4. Compute the value of the test statistic
5. Decision rule: Reject H20 if X2 ≥ X α

Illustration: Let us illustrate the test of independence by co


nsidering the
study conducted by the MOHA soft drink company. MOHA manu
factures and
distributes three types of Soft drink: Mirinda, 7 UP, and Pepsi. In
an analysis
of the market segments for the three Soft drinks, the firm’s mar
ket research
group raised the question of whether preferences for the three
Soft drinks
differ among male and female drinkers. If soft drinks pr
eference is
independent of the gender of the drinker, one advertising cam
paign will be
initiated for all of MOHA’s soft drink. However, if soft drink
preference
depends on the gender of the drinker, the firm will tailor its pr
omotions to
different target markets.

Step 1:
H0: Soft drink preference is independent of the gender of the drin
ker.
H1: Soft drink preference is not independent of the gender of the
drinker.
Step 2: After identification of the population as all male and fem
ale drinkers,
a sample selected and each individual asked to state his or her
preference
for the three soft drinks.
Contingency table* for soft drink preference and gender
GENDER SOFT DRINK PREFERENCE

Mirind 7 Peps Total


a UP i
Male 80
Female 30 30 10 70
Total 50 70 30 150
*When data are arranged in table form for the chi-square test, the table is called a contingency t
able.

Step 3: Expected Frequencies


GENDER SOFT DRINK PREFERENCE

2
Mirind 7 Pepsi Total
a UP
Male 16 80
3
Female 23.33 32.6 14 70
7
Total 50 70 30 150

Expected frequency = (Row total)(Column total)


Sample size

Step 4:

Computation of the chi square test statistic

Gender fij - eijij 2 - - (f


Prefere Observed Expected 2 (fij
ij )
nce frequency frequency( eij) e
eij
Male Mirinda 20 26.67 -6.67 44.44 1.67
Male 7 UP 40 37.33 2.67 7.11 0.19
Pepsi 20 16 4.00 16.00 1.00
Female Mirinda 30 23.33 6.67 44.44 1.90
Female 7 UP 30 32.67 -2.67 7.11 0.22
Pepsi 10 14 4.00 2 16 1.14
Total 150 X =6.12
Step 5: Degree of freedom= (2-1)(3-1)= 2
2 2 2

X 0.05 at degree of freedom=2 is 5.991, X > X α , therefore Reject H0. The


preference is not independent of the gender of the drinker.

Tests for the equality of several proportions

4.3.
In this situation, samples are selected from several different populations, and
the researcher is interested in determining whether the proportions of
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elements that have a common characteristic are the same for each
population.

Illustration: A psychologist selected 100 people from each of four income groups and asked them
if they were “very happy.” The percent for each group who responded yes and the number from the
survey are shown in the table. At a 0.05 level of significance test the claim that there is no difference in
the proportions.

Househol Less than 30,000 – 75,000 – 100,000 Total


d income 30,000 74,999 99,999 or more

Yes 24 33 38 49 144
No 76 67 62 51 256
100 100 100 100 400
Solution
Step 1: State the hypotheses and identify the claim.
H0: p1 = p2 = p3 = p4
H1: At least one proportion differs from the others.
Step 2: Find the critical value. (R - 1)(C - 1) = (2 - 1)(4 - 1) = 3. The critical
value is 7.815.
Step 3: Compute the test value.
EXPECTED FREQUENCIES

Househol Less than 30,000 – 75,000 – 100,000 Total


d income 30,000 74,999 99,999 or more

Yes 36 36 36 36 144
No 64 64 64 64 256
100 100 100 100 400
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Calculation of X

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Step 4: Make the decision reject the null hypothesis since 14.149 > 7.815.

4.4. Goodness- of fit tests


The X2 test is used to test whether there is a significance difference between
the observed number of responses in each category and the expected
number of responses for such category under the assumptions of null
hypothesis. In other words, the objective is to find out how well the
distribution of observed frequencies (fo) fit the distribution of expected
frequencies (fe).
Illustration: Assume that a shoe manufacturer company sold 30 pairs of
shoes. There is six size of shoes and the company expects the size of shoes
are sold in equal proportion that is each size is sold 5 times. In the survey
conducted the actual number of frequency each size sold in sequence is as
follows; 4, 7, 3, 6, 8, 2. A comparison of observed frequency and expected
frequency is tabulated below;
Size
A B C D
E F
Observed 4 7 3 6 8 2
frequency
Expected 5 5 5 5 5 5
frequency

Steps involved in X test


2

Step 1: H0: All sizes are equally likely to occur.


P1=P2=P3=P4=P5=P6
H1: All probabilities are not equally likely to occur.
Step 2: Assume

Step 3: Expected frequency (fe) = 5.


Step 4:
X =2 (4-5) /52+ (7-5) /5 2+ (3-5) /5 2+ (6-5) /5 +
2 (8-5) /5 +(2-5)
2 /5 2

=1/5 + 4/5 + 4/5 + 1/5 + 9/5 +9/5

5
= 28/5 = 5.6
2

Since our comput 2

ed2 value of X =
5.6 is less than t
he critical value
of
X =11.07, we can
accept the null hy
pothesis.
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