14. Statistical Techniques in Business & Economics (15)

15 ­ © 2004 McGraw­Hill Ryerson Limited. All rights reserved. 15 ­ 2. When you have completed this chapter, you will be able to:. Understand the nature and role of . chi­square distribution. Identify a wide variety of uses of . the chi­square distribution. Conduct a test of hypothesis comparing an . observed frequency distribution to an . expected frequency © 2004 McGraw­Hill Ryerson Limited. All rights reserved. 15 ­ 3. Conduct a test of hypothesis for normality . using the chi­square distribution Conduct a hypothesis test to determine . whether two attributes are . © 2004 McGraw­Hill Ryerson Limited. All rights reserved. Characteristics of the 15 ­ 4. Characteristics of the . Chi­Square Distribution. Chi­Square Distribution it is positively skewed. it is non­negative. it is based on degrees of freedom . when the degrees of freedom change . a new distribution is created . © 2004 McGraw­Hill Ryerson Limited. All rights reserved. Characteristics of the 15 ­ 5. Characteristics of the . Chi­Square Distribution. Chi­Square Distribution. df = 3. df = 5. df = © 2004 McGraw­Hill Ryerson Limited. All rights reserved. Goodness­of­Fit Test: . Goodness­of­Fit Test: . 15 ­ 6. Equal Expected . Equal Expected . Frequencies. 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 © 2004 McGraw­Hill Ryerson Limited. All rights reserved. Goodness­of­Fit Test: . Goodness­of­Fit Test: . 15 ­ 7. Equal Expected . Equal Expected . Frequencies. Frequencies 2. 2 fo fe.