MODULE 3.3 December 2 – 9, 2020 Chapter 12 Chi- Square Tests Learning Objectives After completing this chapter, the students will able to: o Explain the characteristics of the chi-square distribution. o Determines the assumptions for chi-square distribution. o Test a hypothesis on the difference between an observed and expected set of frequencies. o Test a distribution for goodness-of-fit. o Test two variables for dependence. o Test proportions for homogeneity. Chapter Outline 12.1 Introduction 12.2The Chi-Square Distribution 12.3Goodness-of-Fit Test Equal Expected Frequencies Unequal Expected Frequencies 12.4 Test of Independence and Homogeneity of Proportions Test for Independence Test for Homogeneity of Proportions Statistics: the mathematical theory of ignorance. -- Morris Kline ……. 313 12.1 Introduction Pearson’s chi-square test, also known as the chi-square goodness-of-fit test or chi-square test for independence. The symbol for chi-square is χ2 (Greek letter chi, pronounced “ki”). A chi square test(also chi-squared orχ2 test) is any statistical hypothesis test in which the sampling distribution of the test statistic is a chi-square distribution when the null hypothesis is true, or any in which this is asymptoticallytrue, meaning that the sampling distribution (if the null hypothesis is true) can be made to approximate a chisquare distribution as closely as desired by making the sample size large enough. There are two types of random variables and they yield two types of data: numerical and categorical. A chi square (χ2) statistic is used to investigate whether distributions of categorical variables differ from one another. The table below could help you see the differences between these two variables. Data Type Categorical Numerical Numerical Question Type What is your sex? Discrete – How many credit cards do you have? Continuous – What is your weight? Possible Responses Male or Female Two or three 50 kilograms 12.2 The Chi- Square Distribution In Chi-square significance tests, random sample data are assumed and a sufficiently large sample size is also assumed. Applying chi-square to small samples exposes the researcher to an unacceptable rate of Type II errors. In addition, adequate cell sizes are also assumed. A common rule is 5 or more in all cells of a 2-by-2 table and 5 or more in 80% of cells in larger tables, but no cells with zero count. In Chi-square significance tests observations must be independent and the same observation can only appear in one cell. This means chi-square cannot be used to test correlated data (e.g. before-and-after, matched pairs and panel data). Also, observations must have the same underlying distribution. The hypothesized distribution is specified in advance so that the number of observations that are expected to appear in each cell of the table can be calculated without reference to observed values. Chi-square significance tests assumed a non-directional hypothesis and test the hypothesis at two variables are related only by chance. If a significant relationship is found, this is not equivalent to establish the researcher’s hypothesis, this A causes B, or that B causes A. The test also grouped the observations in categories. Characteristics of Chi-Square Distribution The computed chi-square is always positive. The shape of the chi-square distribution does not depend on the size of the sample. There is a family of chi-square distributions. The chi-square is positively skewed. Chi-square can be applied in nominal or ordinal level of data. Figure 12.1 shows the several chi-square distributions with corresponding degrees of freedom. Chi-square distribution is similar to the t and F distribution in that there is a family of χ2 distribution, each with a different shape, depending on the number of degrees of freedom. When the number of degrees of freedom of a chi-square distribution is small the distribution is positively skewed, but as the number of degrees of freedom increases it becomes symmetrical and approaches the normal distribution (at about 100 degrees of freedom, the chi-square becomes somewhat normally distributed). The area under the chi-square distribution is equal to 1.00 or 100%. Figure 12.1: The Chi-Square Family of Curves 12.3 Goodness-of-Fit Test [One Sample Test] The chi-square goodness-of-fit test is simply a different usage of Pearsonian chisquare. Chi-square goodness-of-fit test is a non-parametric test (or distribution-free tests) and it is used in Chi-square significance tests to test if an observed distribution conforms to any other distribution, such as one based on theoretical expected distribution (e.g., if the observed distribution is not significantly different from a normal distribution) or one based on some other known distribution (e.g., if the observed distribution is not significantly different from a known distribution). The term goodness-of-fit is used to compare the observed sample distribution with the expected probability distribution. This test determines how well theoretical distribution (such as normal, binomial, or Poisson) fits the empirical distribution. In Chi-square goodness-of-fit test, sample data is divided into intervals. Then the numbers of points that fall into the interval are compared, with the expected numbers of points in each interval. Assumptions in Chi-Square Goodness-of-fit test: 1. Subjects are randomly selected. 2. Categories are mutually exclusive. Procedure for Chi-Square Goodness-of-fit test: 1. Set up the hypothesis for Chi-Square goodness-of-fit test: H0: The null hypothesis assumes that there is no significant difference between theobserved and expected value. H1: The alternative hypothesis assumes that there is a significant between theobserved and the expected value. It can also be written as: H0: The distribution is uniform. H1:The distribution is not uniform. 2. Degree of freedom: It is determine by subtracting 1 to the number of categories in the distribution or n-1. 3. Compute for the expected frequencies. 4. Compute the value of Chi-Square goodness-of-fit test using Formula 12-1: χ2= ∑ (O−E)² (Formula 12-1) E where: χ2= Chi-square value. O = observed value. E = expected value. Statistical decision for hypothesis testing: The calculated value of χ2 test is compared with the table value. If the computed value of χ2 is greater than the critical value, we will reject the null hypothesis and conclude that there is a significant difference between the observed and the expected frequency. On the contrary, if the computed value of χ2 is less than the critical value, we will accept the null hypothesis and conclude that there is no significant difference between the observed and expected value. In symbol, If χ2computed<χ2critical, do not reject H0. If χ2computed ≥ χ2critical, reject H0. Region of Rejection (α) Do not rejectH0 Scale χ2 Critical Value 5. State the conclusion. It is presented in the succeeding examples how to apply chi-square test for equal and equal expected frequencies. A. Equal Expected Frequencies Example1:A bank manager wanted to investigate if the percentage of loan applications made is the same for each of the five days (Monday through Friday) of the week. He randomly selected one week and counted the number of loan applications made on each of the five days. This information he obtained is given in the following table. Day Number of loan application Monday 17 Tuesday 20 Wednesday 16 Thursday 14 Friday 13 Using level of significance of 0.05, can we reject the claim that the proportion of people who filed loan applications in the bank each of the five days of the week is the same? Assume that this week is typical of all the weeks in regard to the applications of loans. Solution: Step1: State the hypothesis. H0: p1=p2=p3=p4=p5 (claim) (The proportion of people filing loan application is the same for all five days of the week.) H1:At least two of the five proportions are not equal to 0.20 (The proportion of people filing loan application is not the same for all five days of the week.) Step 2:The level of significance is α = 0.50. Step 3:Determine the critical region. (Refer to Table D) df = c – 1 = 5 – 1 = 4 χ2critical = 9.488 Table D: Critical values for Chi-Square Tests Degrees of Freedom 1 2 3 4 0.10 2.706 4.605 6.251 7.779 0.05 3.841 5.991 7.815 9.488 0.025 5.024 7.378 9.348 11.143 χ2critical Step 4: Compute for the value of χ2. O p E= np 17 20 16 14 13 Total = 80 0.20 0.20 0.20 0.20 0.20 1.00 80(0.20)= 16 80(0.20) = 16 80(0.20) = 16 80(0.20) = 16 80(0.20) = 16 80 χ² = ∑ O–E (O – E)² 1.00 4.00 0.00 -2.00 -3.00 0.00 1.00 16.00 0.00 4.00 9.00 (O − E)² E 0.0625 1.0000 0.0000 0.2500 0.5625 ∑ (O−E)² E = 1.8750 (O−E)² = 1.875 E Step 5: Decision rule. Since the computed χ2of 1.875 is less than the χ2critical value of 9.488 at level of significance of 0.05, the statistical decision is not to reject the null hypothesis. Region of Rejection (α = 0.05) 1.875 9.488 Step 6: Conclusion Since the null hypothesis has not been rejected, we can conclude that there is evidence that the proportion of people filing loan application is the same for all five days of the week. B. Unequal Expected Frequencies Example 2: A national study of cinema admissions during three-month period revealed these statistics concerning people watching movies and who entered the cinema during the period: Number of movies watch 1 2 3 4 5 Percent of total 40% 30% 15% 10% 5% The cinema administrator is anxious to compare his SJS Cinema experience with the national experience. He selected 200 movie goers and determined the number of times during the three-month period that each was watched movies in their cinema. The observation frequencies are as follows: Number of movies watch Number of movie goers 1 2 3 4 5 100 70 17 8 5 The 0.01 level of significance, can we reject the null hypothesis that the there is no difference between the experience SJS Cinema and the national experience. Solution: Step 1: State the hypothesis H0:There is no difference between the SJS Cinema and the national experience. H1:There is a difference between the SJS Cinema and the national experience. Step 2: The level of significance is α = 0.01 Step 3: Determine the critical region. (Refer to Table D) df = c – 1 = 5 – 1 = 4 χ2critical = 13.277 Step 4: Compute for the value of χ2. Number of Movies O 1 2 3 4 5 100 70 17 8 5 χ2= ∑ (O−E)2 E p 40% 30% 15% 10% 5% E = Op 200(0.40) = 80 200(0.30) = 60 200(0.15) = 30 200(0.10) = 20 200(0.05) = 10 O–E (O – E)² 20 10 -13 -12 -5 400 100 169 144 25 (O − E)² E 5.00 1.67 5.63 7.20 2.50 = 5.00 + 1.67 + 5.63 + 7.20 + 2.50 = 22 Step 5: Decision rule. Since the computed χ2 of 22 is greater than the χ2 critical value of 13.277 at level of significance of 0.01, the statistical decision is to reject the null hypothesis. Region of Rejection (α = 0.01) Step 6: Conclusion. Since the null hypothesis has been rejected, we can conclude that there is evidence of significant difference between the SJS Cinema and the national experience. The cinema administrator would conclude that the SJS Cinema situation is different in other cinemas. 12.4 Test of Independence or Homogeneity of Proportions In the Chi-Square test of Independence, the frequency of one nominal variable is compared with different values of the second nominal variable. This test is used when we have two nominal variables, data may be in the row and column form, and the test variable may be more than two. Chi-square test is far the most common type of chi-square significance test. It is used to test the hypothesis of no association of columns and rows in tabular data. This statistic can be used with nominal data. It is more likely to establish significance to the extent that the relationship is wrong, the sample size is large and the number of values of the two associated variables is also large. Chi-square uses a probability of 0.05 or less, is commonly interpreted by social scientists as the justification for rejecting the null hypothesis that the row variable is unrelated to the column variable. Assumptions in Chi-Square Goodness-of-fit test: Subjects are randomly selected. Observations have been classified simultaneously in two independent categories. Procedure for Chi-Square Test of Independence of Homogeneity: 1. Set up the hypothesis of Chi-Square Test of Independence of Homogeneity: For a contingency table that has r rows and c columns, the chi-square test can be thought of as a test of independence. In a test of independence or homogeneity the null and alternative hypotheses are: H0: The null hypothesis assumes that there is no association between two variables. H1: the alternative hypothesis assumes that there is an association between two variables. It can also be written as: H0: The two categorical variables are independent. H1: The two categorical variables are related. 2. Degree of freedom: The degree of freedom is calculated by using the following formula: df = (r - 1) (c – 1) (Formula 12-3) where: df = degree of freedom for the Chi-square test of independence. r = number of rows in the Chi-square test of independence. c = number of columns in the Chi-square test of independence. 3. Compute for the expected frequencies: Here O denotes the frequency of the observed data and E is the frequency of the expected values. The general table would look something like the one below: Category B R1 R2 : Rn Total C1 O1, 1 O2,1 : On,1 CT1 Category A … … … … … … C2 O1, 2 O2, 2 : On, 2 CT2 Cm O1, m O2, m : On, m CTm Total RT1 RT2 : RTn GT Then we need to calculate the expected values for each cell in the table and we can do that using the row total times the column total divided by the grand total. It is shown in the table below the computation of the expected frequencies. Expected Frequency = Category B R1 R2 : Rn E1,1 E2,1 En,1 (RowTable)(ColumnTotal) (Formula 12-2) TotalSampleSize Category A C2 (RT1 )(CT2 ) = GT (RT2 )(CT2 ) = GT C1 (RT1 )(CT1 ) = E1,2 GT (RT2 )(CT1 ) = E2,2 GT : : (RTn )(CT1 ) (RTn )(CT2 ) = En,2 = GT GT … … E1,m … E2,m Cm (RT1 )(CTm ) = GT (RT1 )(CTm ) = GT : … En,m = (RTn )(CTm ) GT 4. Compute the value of Chi-Square Test of Independence or Homogeneity using Formula 12-1: χ2= ∑ (O−E)2 (Formula 12-1) E where: χ2 = Chi-square value. O = observed value. E = expected value. 5. Statistical decision for hypothesis testing: If χ2computed<χ2critical, do not reject H0. If χ2computed ≥ χ2critical, reject H0. 6. State the conclusion. A. Test for Independence Example 1: Suppose that a survey has been undertaken to determine if there a relationship between place of residence and automobile preference. A random sample of 150 car owners from urban and 100 from rural areas were selected with the following results: Residence Urban Rural Total Toyota 65 40 105 Automobile Mitsubishi Nissan 45 15 20 30 60 35 Ford 25 10 30 Total 150 100 250 At the 0.05 level of significance, is there evidence to reject the claim of a relationship between place of residence and automobile preference? Solution: Step 1: State the hypotheses. H0: There is no relationship between place of residence and automobile preference. (claim) H1: There is a relationship between place of residence and automobile preference. Step 2: The level of significance is α = 0.05 Step 3: Determine the critical region. (Refer to Table D) df = (r - 1)(c - 1) = (2 - 1)(4 - 1) = 1(3) = 3 χ2critical = 7.815 Step 4: Compute for the value of χ2. Observed Frequency Table Residence Urban Rural Total Automobile Mitsubishi Nissan 45 15 20 30 60 35 Toyota 65 40 105 Ford 25 10 30 Total 150 100 250 Compute for the expected frequencies using Formula 12-1. E1,1 = E1,2 = E1,3 = (150)(105) 250 (150)(60) 250 (150)(35) 250 E1,4 = E2,1 = = 63 E2,2 = = 39 E2,3 = = 27 (150)(30) 250 250 (100)(60) 250 (100)(35) 250 E2,4 = = 21 (100)(105) = 42 = 26 = 18 (100)(30) 250 = 14 Expected Frequency Table Residence Urban Rural Toyota 63 42 Automobile Mitsubishi Nissan 39 27 26 18 Ford 21 14 Now we can solve for x² by applying Formula 11-12. χ2= ∑ (O−E)2 (65 – 63) = 63 2 E + (45 – 39) (10 – 14) 39 2 + (15 – 27) 27 2 + (25 – 21) 21 2 + (40 – 42) 42 2 + (20 – 26) 26 2 + (30 – 18) 18 2 + 2 14 = 0.063 + 0.923 + 5.333 + 0.762 + 0.095 + 1.385 + 8. 000 + 1.143 = 17.705 Step 5: Decision rule. Since the computed χ2 of 17.705 is greater than the χ2 critical value of 7.815 at level of significance of 0.05, the statistical decision is to reject the null hypothesis. Step 6: Conclusion. Since the null hypothesis has been rejected, we can conclude that there is evidence that shows significant relationship between place of residence and automobile preference. B. Test for Homogeneity of Proportions Examples 2: A researcher surveyed 80 randomly selected Certified Public Accountants in each of the cities in Metro Manila area and asked them if they have performed work for free for 10 or fewer clients in the last year. The results are shown in the table. At α = 0.10, is there enough evidence to reject the claim that the proportions of those who accept free work for 10 or fewer client are the same in each city? Free Work Yes No Total Cities Mandaluyong Makati 32 36 48 44 80 80 Manila 35 45 80 Marikina 30 50 80 Solution: Step 1: State the hypotheses. H0: p1= p2= p3= p4 (claim) H1: At least one proportion is different from others. Step 2: The level of significance is α = 0.10. Step 3: Determine the critical region. (Refer to Table D) df = (r - 1)(c - 1) = (2 - 1)(4 - 1) = 1(3) = 3 χ2critical = 6.251 Step 4: Compute for the value of χ2. Observed Frequency Table Free Work Yes No Total Manila 35 45 80 Mandaluyong 32 48 80 Cities Makati 36 44 80 Marikina 30 50 80 Compute for the expected frequencies using the Formula 12-1. E1,1 = (133)(80) 320 = 33.25 E2,1 = (187)(80) 320 = 46.75 Total 133 187 320 E1,2 = (133)(80) 320 (133)(35) E1,3 = 320 E1,4 = E2,2 = = 33.25 E2,3 = = 33.25 (133)(80) E2,4 = = 33.25 320 (187)(80) 320 (187)(80) 320 (187)(80) 320 = 46.75 = 46.75 = 46.75 Expected Frequency Table Free Work Yes No Cities Mandaluyong Makati 33.25 33.25 46.75 46.75 Manila 33.25 46.75 Marikina 33.25 46.75 Now we can solve for χ2by applying Formula 12-1. χ2= ∑ (O−E)2 = E (48 –46.75) 46.75 2 + (35 – 33.25) (44 –46.75) 46.75 33.25 2 + 2 + (32 – 33.25) (50 –46.75) 33.25 2 + (36 –33.25) 33.25 2 + (30 –33.25) 33.25 2 2 + (45 –46.75) 46.75 + 2 46.75 = 0.092 + 0.047 + 0.227 + 0.318 + 0.066 + 0. 033 + 0.162 + 0.226 = 1.171 Step 5: Decision rule. Since the computed χ2of 1.171 is less than the χ2critical value of 6.251 at level of significance of 0.10 the statistical decision is not to reject the null hypothesis. Step 6: Conclusion. Since the null hypothesis has been rejected, we can conclude that there is not enough evidence to reject the proportions of those who accept free work for 10 or fewer clients are equal in each city. Name: __________________________________ Date:___________ Score: ________ Section Exercise 12.3A 1.Suppose a market analyst wished to see whether costumers have any preference among eight flavors of a new ice tea. A sample of 320 people provided these data: Apple Cherry Grape Lemon Mango Melon Orange Strawberry 60 30 40 35 50 25 55 25 If there were no preference, one would expect each flavor to be selected with equal frequency. Is there enough evidence to reject the claim that there is no preference in the selection of ice tea, use level of significance α = 0.01? Solution: Step 1: State the hypotheses. H0:_______________________________________________________________ _______________________________________________________________ H1:_______________________________________________________________ _______________________________________________________________ Step 2: The level of significance is _______. Step 3: Determine the critical region. df = _______ and χ2critical= ________ Step 4: Compute the expected frequency table and compute for the value of χ2. Apple Cherry Grape Lemon Mango Melon Orange Strawberry χ2computed= ___________ Step 5: Decision rule. __________________________________________________________________ __________________________________________________________________ Step 6: Conclusion. __________________________________________________________________ __________________________________________________________________ Name: __________________________________ Date:___________ Score: ________ Section Exercise 12.3A 2. A distributor of refrigerator has six locations in the province of Rizal. The sales in units for the first six months of the year were as follows. At the 0.05 significance level do the records suggest that sales are uniformly distributed among the six locations? Binangonan 54 Cainta 28 Taytay 36 Antipolo 31 Morong 46 Tanay 21 Solution: Step 1: State the hypotheses. H0:_______________________________________________________________ _______________________________________________________________ H1:_______________________________________________________________ _______________________________________________________________ Step 2: The level of significance is __________. . Step 3:Determine the degrees of freedom and the critical region. df = _______ and χ2critical= ________ Step 4:Complete the expected frequency table and compute for the value of χ2. Binangonan Cainta Taytay Antipolo Morong Tanay χ2computed= ___________ Step 5: Decision rule. __________________________________________________________________ __________________________________________________________________ Step 6: Conclusion. ___________________________________________________________________ ___________________________________________________________________ Name: __________________________________ Date:___________ Score: ________ Section Exercise 12.3B 1. According to recent census report, 44% of families have two parents present, 26% have only a father, 20% have only a mother, and 10% have no parent. A random sample of families from the municipality of Rizal revealed these results: With Two Parents 80 Father Only 60 Mother Only 75 No Parents 65 If there sufficient evidence to conclude that the proportions of families by type of parent(s) presence differs from those reported by census? Use level of significance α= 0.05? Solution: Step 1:State the hypotheses. H0:_______________________________________________________________ _______________________________________________________________ H1:_______________________________________________________________ _______________________________________________________________ Step 2: The level of significance is __________. . Step 3:Determine the degrees of freedom and the critical region. df = _______ and χ2critical= ________ Step 4:Complete the expected frequency table and compute for the value of χ2. With Two Parents Father Only Mother Only No Parents χ2computed= ___________ Step 5: Decision rule. __________________________________________________________________ __________________________________________________________________ Step 6: Conclusion. __________________________________________________________________ __________________________________________________________________ Name: __________________________________ Date:___________ Score: ________ Section Exercise 12.3B 2. The credit card industry is very competitive, with about 150 billion solicitation each year. In 2009, Visa has about 40% of the market, compared with nearly 22% for Mastecard, 18% for American Express, 15% for Diners Club, and 5% for other credit cards. To check if these percentage still held in 2010, a financial analyst randomly sampled 300 households and asked which credit card they primarily used. The results were as follows: Visa 125 Mastercard 65 American Express 58 Diners Club 32 Others 20 Does this survey indicate that the population percentages using these credit cards differ from the previous year? Use the level of significance α= 0.01? Solution: Step 1:State the hypotheses. H0:_______________________________________________________________ _______________________________________________________________ H1:_______________________________________________________________ _______________________________________________________________ Step 2: The level of significance is __________. . Step 3:Determine the degrees of freedom and the critical region. χ2critical= ________ df = _______ and Step 4:Complete the expected frequency table and compute for the value of χ2. Visa Mastercard American Express Diners Club Others χ2computed= ___________ Step 5: Decision rule. __________________________________________________________________ ____________________________________________________________ Step 6: Conclusion. __________________________________________________________________ __________________________________________________________________ Name: __________________________________ Date:___________ Score: ________ Section Exercises 12.4A 1. A researcher wanted to study the relationship between gender and cellular phone communication network. She took a sample of 500 cellular phone users and obtained the following table. Gender Male Female Total Communication Network Globe Sun 90 25 105 35 195 60 Smart 105 140 245 Total 220 280 500 At the 0.01 level of significance, is there evidence of a relationship between gender and communication network? Solution: Step 1:State the hypotheses. H0:_______________________________________________________________ _______________________________________________________________ H1:_______________________________________________________________ _______________________________________________________________ Step 2: The level of significance is __________. . Step 3:Determine the degrees of freedom and the critical region. df = _______ and χ2critical= ________ Step 4:Complete the expected frequency table and compute for the value of χ2. Gender Male Female Smart Communication Network Globe Sun χ2computed= ___________ Step 5: Decision rule. __________________________________________________________________ __________________________________________________________________ Step 6: Conclusion. __________________________________________________________________ __________________________________________________________________ Name: __________________________________ Date:___________ Score: ________ Section Exercises 12.4A 2. A manufacturing company was interested in determining whether an association exists between commuting time of their employees and the level of job performance. A study of 200 workers revealed the following: Commuting Time Below 15 minutes 15-45 minutes Over 45 minutes Total High 40 20 10 70 Job Performance Average Low 30 20 35 15 25 5 90 40 Total 90 70 40 200 At the 0.10 level of significance, is there evidence of a relationship between commuting time and job performance? Solution: Step 1:State the hypotheses. H0:_______________________________________________________________ _______________________________________________________________ H1:_______________________________________________________________ _______________________________________________________________ Step 2: The level of significance is __________. . Step 3:Determine the degrees of freedom and the critical region. df = _______ and χ2critical= ________ Step 4:Complete the expected frequency table and compute for the value of χ2. Commuting Time Below 15 minutes 15-45 minutes Over 45 minutes High Commuting Time Average Low χ2computed= ___________ Step 5: Decision rule. __________________________________________________________________ __________________________________________________________________ Step 6: Conclusion. __________________________________________________________________ __________________________________________________________________ Name: __________________________________ Date:___________ Score: ________ Section Exercises 12.4A 3. The personnel director of San Sebastian College- Recoletos, is interesting in determining whether a faculty member's educational level has an effect on his or her job field specialization. An exam was given to a sample of 120 faculty members, and the director would like to know whether there is an association in exam performance among three groups (with Bachelor's degree, Master's degree and Doctorate degree). Rather than using the actual examination scores. He rated each person's exam performance as high, average, and low. The results of the study are: Educational Level Bachelor's degree Master's degree Doctorate degree Total High 10 20 10 40 Exam Performance Average Low 8 12 40 15 7 3 50 30 Total 30 70 20 120 Does job knowledge as measured by the exam appear to be related to the level of faculty member's education, at this particular school? Use 0.01level of significance. Solution: Step 1:State the hypotheses. H0:_______________________________________________________________ _______________________________________________________________ H1:_______________________________________________________________ _______________________________________________________________ Step 2: The level of significance is __________. . Step 3:Determine the degrees of freedom and the critical region. df = _______ and χ2critical= ________ Step 4:Complete the expected frequency table and compute for the value of χ2. Educational Level Bachelor’s degree Master's degree Doctorate degree High Exam Performance Average Low χ2computed= ___________ Step 5: Decision rule. ________________________________________________________________________ ________________________________________________________________________ Step 6: Conclusion. _______________________________________________________________________________ _______________________________________________________________________________ Name: __________________________________ Date:___________ Score: ________ Section Exercises 12.4B 1. An advertising agency has decided to ask 120 customers at each of four shopping malls if they are willing to take part in a market research survey. According to past studies, 40% of Filipinos refuse to take part in such surveys. The results are shown in the table. At α= 0.05, test the claim that the proportions of those who are willing to participate are equal. Participation Will participate Will not participate Total A 80 40 120 Malls C 90 30 120 B 70 50 120 D 60 60 120 Total 130 180 480 Solution: Step 1:State the hypotheses. H0:_______________________________________________________________ _______________________________________________________________ H1:_______________________________________________________________ _______________________________________________________________ Step 2: The level of significance is __________. . Step 3:Determine the degrees of freedom and the critical region. df = _______ and χ2critical= ________ Step 4:Complete the expected frequency table and compute for the value of χ2. Malls Participation A B C D Will participate Will not participate χ2computed= ___________ Step 5: Decision rule. __________________________________________________________________ _________________________________________________________________ Step 6: Conclusion. __________________________________________________________________ __________________________________________________________________ Name: __________________________________ Date:___________ Score: ________ Section Exercises 12.4B 2. The finance officer of a large supermarket chain wished to determine if their customers made a list before going to grocery shopping. He surveyed 500 customers in five stores. The results are shown in the table. At α= 0.01, test the claim that the proportions of the customers in the five stores who made a list before going shopping are equal. Stores Made list No list Total A 20 80 100 B 30 70 100 C 50 50 100 D 40 60 100 E 55 45 100 Total 195 305 500 Solution: Step 1:State the hypotheses. H0:_______________________________________________________________ _______________________________________________________________ H1:_______________________________________________________________ _______________________________________________________________ Step 2: The level of significance is __________. . Step 3:Determine the degrees of freedom and the critical region. df = _______ and χ2critical= ________ Step 4:Complete the expected frequency table and compute for the value of χ2. Stores A B C D E Made list No list χ2computed= ___________ Step 5: Decision rule. __________________________________________________________________ ______________________________________________________________ Step 6: Conclusion. __________________________________________________________________ __________________________________________________________________ Name: __________________________________ Date:___________ Score: ________ Section Exercises 12.4B 3. A record company wanted to survey its customers regarding music preferences. A random sample of 500 frequent customers of the record company was selected, and information was gathered on their music preference and job classification. From the following data, can the null hypothesis of independence between type of music and working status be rejected at the 5% significance level? Job Classification Worker Clerical Managerial Executive Total Pop 12 30 23 35 100 Classical 13 25 26 36 100 Type of Music Rock Jazz 15 17 33 40 20 13 32 30 100 100 R and B 16 38 28 18 100 Total 73 166 110 151 500 Solution: Step 1: State the hypotheses. H0:_______________________________________________________________ _______________________________________________________________ H1:_______________________________________________________________ _______________________________________________________________ Step 2: The level of significance is __________. . Step 3:Determine the degrees of freedom and the critical region. df = _______ and χ2critical= ________ Step 4:Complete the expected frequency table and compute for the value of χ2. Job Classification Worker Clerical Managerial Executive Pop Type of Music Classical Rock Jazz R and B χ2computed= ___________ Step 5: Decision rule. __________________________________________________________________ _________________________________________________________________ Step 6: Conclusion. __________________________________________________________________ __________________________________________________________________ Name: __________________________________ Date:___________ Score: ________ BIBLIOGRAPHY http://images.books24x7.com/bookimages/id_5642/fig11-19.jpg http://blog.tutorvista.com/wp-content/uploads/2010/12/d7.bmp