Bonus Assignment - Chi Squared

Research Methods & Project Management

Kareem Mansour
A doctor believes that the proportions of births in this country on each day of the week are

equal. A simple random sample of 700 births from a recent year is selected, and the results

are below. At a significance level of 0.01, is there enough evidence to support the doctor’s

claim?

This is tested using chi-square goodness of fit.

Null hypothesis: All 7 categories have true proportions equal to their claims. Alternative

hypothesis: One percentage differs from its declared value.

p7 = 0.142857

At least one p does not match the declared value.

Expected Observed (0) Expected (E= (O-E)

fraction (p) пр) E

0.142857 65 100 12.25

0,142857 103 100 0.09

0.142857 114 100 1.96

0.142857 116 100 2.56

0.142857 115 100 2.25

0.142857 112 100 1.44

0.142857 75 100 6.25

Σο=π=700 ΧΣ (ΟΕ) E 26.8

Test statistic: X = 26.8

Significance level = 0.01

Degrees of freedom, df=k-1-6

Critical value = 16.812 001

Decision Rule: Reject Ho if x> 16.812

To get p-value, we can use excel function CHISQ.DIST.RT ( 26.8 6) 0.000157 848 0.0002

Test statistic exceeds critical value, rejecting null hypothesis. At 1%, there is strong proof that

one percentage is not as reported.

We deny doctor's claim

a) State the null and alternative hypothesis (in words) b) What are the degrees of freedom? c)

Calculate the test statistic. d) Do we reject the Ho? In this case, what does this mean?

a) Null and Alternative Hypotheses:

Null hypothesis (Ho): This nation has equal birth rates on each day.

Alternative hypothesis (H1): One percentage differs from its declared value.

b) Degrees of Freedom:

DF = k - 1, where k is the number of categories (weekdays). Since there are 7 days in the

week, df = 7 - 1 = 6.

c) Calculate the Test Statistic:

The test statistic (chi-square) Here, Σ(O - E)^2/E = 26.8 (given in the information).

d) Decision on Null Hypothesis (Ho):

The critical value for a chi-square distribution with 6 degrees of freedom and a

significance level of 0.01 is roughly 16.812 (as stated in the material).

Null hypothesis rejected (X>16.812).

Interpretation: There is considerable evidence that at least one of the birth proportions on

various days of the week varies from its declared value at 1%.

Conclusion: The doctor's assertion that births are equal on each day of the week is false.

2) Using a goodness-of-fit test, we can assess whether a set of obtained frequencies

differ from a set of __ Expected_____ frequencies

A. Mean

B. Actual

C. Predicted

D. Expected

3) In general, the expected frequencies per cell in the conduct of a Chi-Square test are

those one would

A. expect to find in a given cell if the alternative hypothesis were actually true

B. expect to find in a given cell if the null hypothesis were actually false

C. expect to find in a given cell if the null hypothesis were actually true
D. expect to find in a given cell if either the null hypothesis or the alternative hypothesis

were actually true

4) The degrees of freedom for the Chi-Square test statistic when testing for independence

in a contingency table with 4 rows and 4 columns would be

The degree of freedom in the chi-square test for independence is calculated using the

formula (r-1)(c-1), where r represents the number of rows and c represents the number of

columns in the contingency table. Thus, the degree of freedom will be calculated as (4-1)

(4-1)=3*3=9. As a result of providing 4 rows and 4 columns. The right response is C,

which states that the degree of freedom for the chi-square test for independence is 9.

5) A chi-square test is used to test whether a 0 to 9 spinner is "fair" (that is, the outcomes

are all equally likely). The spinner is spun 100 times, and the results are recorded. The

degrees of freedom for the test will be:

We have been provided with a spinner that contains numbers ranging from 0 to 9,

resulting in a total of 10 potential outcomes.

Consequently, there are a total of 10 potential categories for the variables

c=10

The degrees of freedom for the chi-square goodness-of-fit test is equal to the number of

categories minus 1.
 df=c−1=10−1=9

6. Calculate the expected values based on the given value in the 2x3 contingency table below.

Show all work. (20 points)

Mean Salaries of different education levels among 2 companies

Bachelor’s Master’s Doctorat

Company A $49,500 $70,000 $88,000 $207,500

Company B $51,000 $70,000 $90,000 $211,000

Total $100,500 $140,000 $178,000 $418,500

a) What is the chi-square statistic? (Show all work for credit) 10 points

The chi-square statistic quantifies the discrepancy between the actual data and the predicted

data. The calculation involves summing the squared differences between the observed and

predicted frequencies, which are then divided by the expected frequencies.

A high chi-square score indicates a significant deviation between the actual data and the

predicted data. Nevertheless, the chi-square statistic just quantifies the disparity between the

two datasets, without providing any information about the statistical significance of this

disparity.

b) Is it statistically significant? Explain your answer. 10 points

In order to assess the statistical significance of the discrepancy between the actual and

predicted data, it is necessary to compute the p-value. The p-value is the likelihood of

obtaining a chi-square statistic that is equal to or greater than the one we saw, on the

assumption that the null hypothesis is accurate.

predicted data. Put simply, the null hypothesis posits that the duration it takes to sell

residences remains unaffected by the promise made by HOME Realty stating that it may be

done within 30 days or less. The dataset has a p-value of 0.589. This indicates that there is a

58.99% probability of obtaining a chi-square statistic that is as significant as the one we saw,

even if the null hypothesis is true.

Given that the p-value exceeds 0.05, we do not have sufficient evidence to reject the null

hypothesis. Insufficient data exists to support the assertion made by HOME Realty that

residences are sold within a timeframe of 30 days or less. Put simply, the chi-square statistic

does not exhibit statistical significance.

Bonus: What are we calculating when we calculate expected frequencies? What is the reason for

calculating expected frequencies the way we do? In laymen’s terms, what do expected

frequencies tell us?

In statistical analysis, anticipated frequencies estimate the number of occurrences in each

category or cell if the null hypothesis is true. So, it's the amount of observations we'd expect if

there's no difference or relationship. Calculating anticipated frequencies this manner allows

comparison with observed frequencies. Statistical methods like the chi-square test compare

observed and anticipated frequencies to see whether the differences are significant or due to

random chance.
In simple words, predicted frequencies show what we would expect if the data had no influence

or connection. If the observed frequencies considerably depart from these predicted values, we

may find a meaningful pattern, correlation, or difference, calling the null hypothesis into doubt.

Expected frequencies let us determine whether observed data matches a theory.