14-1 1514-- 1 Chapter 14 Created by Bethany Stubbe and Stephan Kogitz McGraw-Hill-Ryerson © The McGraw-Hill Companies, Inc., 2004 All Rights Reserved. Chapter Fourteen 14-2 1514-- 2 Chi-Square Applications for Nominal Data GOALS When you have completed this chapter, you will be able to: ONE List the characteristics of the chi-square distribution. TWO Conduct a test of hypothesis comparing an observed set of frequencies to an expected distribution. THREE Conduct a test of hypothesis to determine whether two classification criteria are related. McGraw-Hill-Ryerson © The McGraw-Hill Companies, Inc., 2004 All Rights Reserved. 14-3 Characteristics of the ChiSquare Distribution 1514-- 3 The major characteristics of the chi-square distribution are: •It is positively skewed. •It is never negative. •It is based on degrees of freedom. •When the degrees of freedom change a new distribution is created. McGraw-Hill-Ryerson © The McGraw-Hill Companies, Inc., 2004 All Rights Reserved. 14-4 1514-- 4 df = 3 df = 5 df = 10 c2 McGraw-Hill-Ryerson © The McGraw-Hill Companies, Inc., 2004 All Rights Reserved. 14-5 1514-- 5 Goodness-of-Fit Test: Equal Expected Frequencies Let f0 and fe be the observed and expected frequencies respectively. H0: There is no difference between the observed and expected frequencies. H1: There is a difference between the observed and the expected frequencies. McGraw-Hill-Ryerson © The McGraw-Hill Companies, Inc., 2004 All Rights Reserved. 14-6 1514-- 6 Goodness-of-fit Test: Equal Expected Frequencies The test statistic is: c 2 f o f e 2 fe The critical value is a chi-square value with (k-1) degrees of freedom, where k is the number of categories McGraw-Hill-Ryerson © The McGraw-Hill Companies, Inc., 2004 All Rights Reserved. 14-7 1514-- 7 EXAMPLE 1 The following information shows the number of employees absent by day of the week at a large a manufacturing plant. At the .05 level of significance, is there a difference in the absence rate by day of the week? McGraw-Hill-Ryerson © The McGraw-Hill Companies, Inc., 2004 All Rights Reserved. 14-8 1514-- 8 Example 1 continued Day Monday Tuesday Wednesday Thursday Friday Total McGraw-Hill-Ryerson Frequency 120 45 60 90 130 445 © The McGraw-Hill Companies, Inc., 2004 All Rights Reserved. 14-9 1514-- 9 EXAMPLE 1 continued Assume equal expected frequency: (120+45+60+90+130)/5=89. The degrees of freedom is (5-1)=4. The critical value is 9.488. Use Appendix B. McGraw-Hill-Ryerson © The McGraw-Hill Companies, Inc., 2004 All Rights Reserved. 14-10 1514-- 10 Example 1 continued Day Frequency Monday 120 Tuesday 45 Wednesday 60 Thursday 90 Friday 130 Total 445 McGraw-Hill-Ryerson Expected 89 89 89 89 89 445 (fo – fe)2/fe 10.80 21.75 9.45 0.01 18.89 60.90 © The McGraw-Hill Companies, Inc., 2004 All Rights Reserved. 14-11 1514-- 11 EXAMPLE 1 continued Because the computed value of chi-square is greater than the critical value, H0 is rejected. We conclude that there is a difference in the number of workers absent by day of the week. McGraw-Hill-Ryerson © The McGraw-Hill Companies, Inc., 2004 All Rights Reserved. 14-12 1514-- 12 EXAMPLE 2 The results of the census for a province indicated that 63.9% of the population is married, 7.7% widowed, 6.9% divorced (and not re-married), and 21.5% single (never been married). A sample of 500 adults from one city in that province showed that 310 were married, 40 widowed, 30 divorced, and 120 single. At the .05 significance level can we conclude that the city sampled is different from the province as a whole? McGraw-Hill-Ryerson © The McGraw-Hill Companies, Inc., 2004 All Rights Reserved. 14-13 1514-- 13 EXAMPLE 2 continued Status f0 fe ( f 0 f e )2 / f e Married 310 319.5 .2825 Widowed 40 38.5 .0584 Divorced 30 34.5 .5870 Single 120 107.5 1.4535 Total 500 McGraw-Hill-Ryerson 2.3814 © The McGraw-Hill Companies, Inc., 2004 All Rights Reserved. 14-14 EXAMPLE 2 1514-- 14 continued Step 1: H0: The distribution has not changed H1: The distribution has changed. 2: H0 is rejected if χ2 >7.815, df=3, α = .05 Step 3: χ2 = 2.3814 Step 4: The null hypothesis is rejected. The distribution regarding marital status in the city in question is different from the rest of the province. Step McGraw-Hill-Ryerson © The McGraw-Hill Companies, Inc., 2004 All Rights Reserved. 14-15 1514-- 15 Contingency Table Analysis A contingency table is used to investigate whether two traits or characteristics are related. Each observation is classified according to two criteria. We use the usual hypothesis testing procedure. The degrees of freedom is equal to: (number of rows-1)(number of columns-1). The expected frequency is computed as: Expected Frequency = (row total)(column total)/grand total McGraw-Hill-Ryerson © The McGraw-Hill Companies, Inc., 2004 All Rights Reserved. 14-16 1514-- 16 EXAMPLE 4 Is there a relationship between the location of an accident and the gender of the person involved in the accident? A sample of 150 accidents reported to the police were classified by type and gender. At the .05 level of significance, can we conclude that gender and the location of the accident are related? McGraw-Hill-Ryerson © The McGraw-Hill Companies, Inc., 2004 All Rights Reserved. 14-17 EXAMPLE 4 1514-- 17 continued Sex Work Home Other Total Male 60 20 10 90 Female 20 30 10 60 Total 80 50 20 150 The expected frequency for the work-male intersection is computed as (90)(80)/150=48. Similarly, you can compute the expected frequencies for the other cells. McGraw-Hill-Ryerson © The McGraw-Hill Companies, Inc., 2004 All Rights Reserved. 14-18 1514-- 18 EXAMPLE 4 continued H0: Gender and location are not related. H1: Gender and location are related. H0 is rejected if the computed value of χ2 is greater than 5.991. There are (3- 1)(2-1) = 2 degrees of freedom. McGraw-Hill-Ryerson © The McGraw-Hill Companies, Inc., 2004 All Rights Reserved. 14-19 1514-- 19 Example 4 continued Step 3: c2 Find the value of χ2. 60 48 2 48 10 82 ... 8 16 .667 H0 is rejected. We conclude that gender and location are related. McGraw-Hill-Ryerson © The McGraw-Hill Companies, Inc., 2004 All Rights Reserved.
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