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You have seen the χ 2 test statistic used in three different circumstances. The following bulleted list is a summary that will help you decide which χ 2 test is the appropriate one to use.

  • Goodness-of-Fit: Use the goodness-of-fit test to decide whether a population with an unknown distribution "fits" a known distribution. In this case there will be a single qualitative survey question or a single outcome of an experiment from a single population. Goodness-of-Fit is typically used to see if the population is uniform (all outcomes occur with equal frequency), the population is normal, or the population is the same as another population with a known distribution. The null and alternative hypotheses are:
    H 0 : The population fits the given distribution.
    H a : The population does not fit the given distribution.
  • Independence: Use the test for independence to decide whether two variables (factors) are independent or dependent. In this case there will be two qualitative survey questions or experiments and a contingency table will be constructed. The goal is to see if the two variables are unrelated (independent) or related (dependent). The null and alternative hypotheses are:
    H 0 : The two variables (factors) are independent.
    H a : The two variables (factors) are dependent.
  • Homogeneity: Use the test for homogeneity to decide if two populations with unknown distributions have the same distribution as each other. In this case there will be a single qualitative survey question or experiment given to two different populations. The null and alternative hypotheses are:
    H 0 : The two populations follow the same distribution.
    H a : The two populations have different distributions.

Chapter review

The goodness-of-fit test is typically used to determine if data fits a particular distribution. The test of independence makes use of a contingency table to determine the independence of two factors. The test for homogeneity determines whether two populations come from the same distribution, even if this distribution is unknown.

Which test do you use to decide whether an observed distribution is the same as an expected distribution?

a goodness-of-fit test

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What is the null hypothesis for the type of test from [link] ?

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Which test would you use to decide whether two factors have a relationship?

a test for independence

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Which test would you use to decide if two populations have the same distribution?

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How are tests of independence similar to tests for homogeneity?

Answers will vary. Sample answer: Tests of independence and tests for homogeneity both calculate the test statistic the same way ( i j ) ( O - E ) 2 E . In addition, all values must be greater than or equal to five.

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How are tests of independence different from tests for homogeneity?

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Bringing it together

  1. Explain why a goodness-of-fit test and a test of independence are generally right-tailed tests.
  2. If you did a left-tailed test, what would you be testing?
  1. The test statistic is always positive and if the expected and observed values are not close together, the test statistic is large and the null hypothesis will be rejected.
  2. Testing to see if the data fits the distribution “too well” or is too perfect.
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Questions & Answers

Ayele, K., 2003. Introductory Economics, 3rd ed., Addis Ababa.
Widad Reply
can you send the book attached ?
Ariel
?
Ariel
What is economics
Widad Reply
the study of how humans make choices under conditions of scarcity
AI-Robot
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn Reply
U(x,y) = (x×y)1/2 find mu of x for y
Desalegn
what is ecnomics
Jan Reply
this is the study of how the society manages it's scarce resources
Belonwu
what is macroeconomic
John Reply
macroeconomic is the branch of economics which studies actions, scale, activities and behaviour of the aggregate economy as a whole.
husaini
etc
husaini
difference between firm and industry
husaini Reply
what's the difference between a firm and an industry
Abdul
firm is the unit which transform inputs to output where as industry contain combination of firms with similar production 😅😅
Abdulraufu
Suppose the demand function that a firm faces shifted from Qd  120 3P to Qd  90  3P and the supply function has shifted from QS  20  2P to QS 10  2P . a) Find the effect of this change on price and quantity. b) Which of the changes in demand and supply is higher?
Toofiq Reply
explain standard reason why economic is a science
innocent Reply
factors influencing supply
Petrus Reply
what is economic.
Milan Reply
scares means__________________ends resources. unlimited
Jan
economics is a science that studies human behaviour as a relationship b/w ends and scares means which have alternative uses
Jan
calculate the profit maximizing for demand and supply
Zarshad Reply
Why qualify 28 supplies
Milan
what are explicit costs
Nomsa Reply
out-of-pocket costs for a firm, for example, payments for wages and salaries, rent, or materials
AI-Robot
concepts of supply in microeconomics
David Reply
economic overview notes
Amahle Reply
identify a demand and a supply curve
Salome Reply
i don't know
Parul
there's a difference
Aryan
Demand curve shows that how supply and others conditions affect on demand of a particular thing and what percent demand increase whith increase of supply of goods
Israr
Hi Sir please how do u calculate Cross elastic demand and income elastic demand?
Abari
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Source:  OpenStax, Introductory statistics. OpenStax CNX. May 06, 2016 Download for free at http://legacy.cnx.org/content/col11562/1.18
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