Chi square test as a distributional goodness of fit, Applied Statistics

Chi Square Test as a Distributional Goodness of Fit

In day-to-day decision making managers often come across situations wherein they are in a state of dilemma about the application of a suitable distribution for the data they have. This assumes importance in the light that in this age one cannot afford to make mistakes which would put the firm in a disadvantageous position. Under these circumstances, managers can employ the Chi Square distribution to verify the appropriateness of the distribution employed by them and conclude whether any significant difference exists between the observed (actual) and the theoretical distribution they have employed. We look at the steps constituting this.

1. Setting up the hypothesis and the computation of the observed and the theoretical frequencies:

This step consists of setting up the hypothesis and arriving at calculated fo and the corresponding fe from the table.

2. Finding the value of the chi square statistic:

         The Chi Square statistic is given by

814_chi square test.png

         where,   

                   fo is the observed frequency

                   fe is the expected frequency.

3. Determining the degrees of freedom for the distribution:

We obtain the same in this case by applying the (k - 1) rule, where 'k' refers to the number of points we have sought to compare while calculating observed and theoretical frequencies. This has to be further reduced by the number of parameters one wishes to estimate from the sample statistics.

4. Referring the tables for the c2 statistic at (k - 1) number of degrees and ' α ' level of significance:

In this step, we refer the tables for the c2 statistic at (k - 1) degrees of freedom and required level of significance.

5. Accepting or rejecting the null hypothesis: In this step, one determines whether the computed statistic falls in the accepted region or not and accordingly accepts or rejects the null hypothesis.   

Posted Date: 9/15/2012 6:10:59 AM | Location : United States







Related Discussions:- Chi square test as a distributional goodness of fit, Assignment Help, Ask Question on Chi square test as a distributional goodness of fit, Get Answer, Expert's Help, Chi square test as a distributional goodness of fit Discussions

Write discussion on Chi square test as a distributional goodness of fit
Your posts are moderated
Related Questions
To study the physical fitness of a sample of 28 people, the data below was collected representing the  number of sit-ups that a person could do in one minute.      10    12

prepare a critical analysis of a quantitative study focusing on protection of human participants data collection data management and analysis problem statement and interpretation o

differance b/w big M mathod and two phase mathod

In a three-cornered paint ball duel, A, B, and C successively take shots at each other until only one of them remains paint free. Once hit, a player is out of the game and gets no

Examples of grouped, simple and frequency distribution data

Why are graphs and tables useful when examining data? A researcher is comparing two middle school 7th grade classes. One class at one school has participated in an arts program

Testing of Hypothesis One objective of sampling theory is Hypothesis Testing. Hypothesis testing begins by making an assumption about the population parameter. Then we gather

Given a certain population there are various ways in which a sample may be drawn from it. The chart below illustrates this point: Figure 1 In  Judgem

how to get statistical quality control assignment in brief?

what are the importance, uses,optimums and applications of the following in agriculture field experiments; 1.standard deviation 2.standard error 3. coefficient of variation