Statistics for Managers using Microsoft Excel 6 th

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Statistics for Managers using Microsoft Excel 6 th Global Edition Chapter 12 Chi-Square Tests

Statistics for Managers using Microsoft Excel 6 th Global Edition Chapter 12 Chi-Square Tests and Nonparametric Tests Copyright © 2011 Pearson Education 12 -1

Learning Objectives In this chapter, you learn: § How and when to use the

Learning Objectives In this chapter, you learn: § How and when to use the chi-square test for contingency tables § How to use the Marascuilo procedure for determining pairwise differences when evaluating more than two proportions § How and when to use the Mc. Nemar test § How and when to use nonparametric tests Copyright © 2011 Pearson Education 12 -2

Contingency Tables DCOVA Contingency Tables n n n Useful in situations comparing multiple population

Contingency Tables DCOVA Contingency Tables n n n Useful in situations comparing multiple population proportions Used to classify sample observations according to two or more characteristics Also called a cross-classification table. Copyright © 2011 Pearson Education 12 -3

Contingency Table Example DCOVA Left-Handed vs. Gender Dominant Hand: Left vs. Right Gender: Male

Contingency Table Example DCOVA Left-Handed vs. Gender Dominant Hand: Left vs. Right Gender: Male vs. Female § 2 categories for each variable, so this is called a 2 x 2 table § Suppose we examine a sample of 300 children Copyright © 2011 Pearson Education 12 -4

Contingency Table Example (continued) DCOVA Sample results organized in a contingency table: sample size

Contingency Table Example (continued) DCOVA Sample results organized in a contingency table: sample size = n = 300: 120 Females, 12 were left handed 180 Males, 24 were left handed Copyright © 2011 Pearson Education Hand Preference Gender Left Right Female 12 108 120 Male 24 156 180 36 264 300 12 -5

 2 Test for the Difference Between Two Proportions DCOVA H 0: π1 =

2 Test for the Difference Between Two Proportions DCOVA H 0: π1 = π2 (Proportion of females who are left handed is equal to the proportion of males who are left handed) H 1: π1 ≠ π2 (The two proportions are not the same – hand preference is not independent of gender) n n If H 0 is true, then the proportion of left-handed females should be the same as the proportion of left-handed males The two proportions above should be the same as the proportion of left-handed people overall Copyright © 2011 Pearson Education 12 -6

The Chi-Square Test Statistic DCOVA The Chi-square test statistic is: n where: fo =

The Chi-Square Test Statistic DCOVA The Chi-square test statistic is: n where: fo = observed frequency in a particular cell fe = expected frequency in a particular cell if H 0 is true (Assumed: each cell in the contingency table has expected frequency of at least 5) Copyright © 2011 Pearson Education 12 -7

Decision Rule DCOVA The test statistic approximately follows a chisquared distribution with one degree

Decision Rule DCOVA The test statistic approximately follows a chisquared distribution with one degree of freedom Decision Rule: If , reject H 0, otherwise, do not reject H 0 Copyright © 2011 Pearson Education 0 Do not reject H 0 Reject H 0 2 2α 12 -8

Computing the Average Proportion DCOVA The average proportion is: 120 Females, 12 were left

Computing the Average Proportion DCOVA The average proportion is: 120 Females, 12 were left handed Here: 180 Males, 24 were left handed i. e. , based on all 180 children the proportion of left handers is 0. 12, that is, 12% Copyright © 2011 Pearson Education 12 -9

Finding Expected Frequencies DCOVA n n To obtain the expected frequency for left handed

Finding Expected Frequencies DCOVA n n To obtain the expected frequency for left handed females, multiply the average proportion left handed (p) by the total number of females To obtain the expected frequency for left handed males, multiply the average proportion left handed (p) by the total number of males If the two proportions are equal, then P(Left Handed | Female) = P(Left Handed | Male) =. 12 i. e. , we would expect (. 12)(120) = 14. 4 females to be left handed (. 12)(180) = 21. 6 males to be left handed Copyright © 2011 Pearson Education 12 -10

Observed vs. Expected Frequencies DCOVA Hand Preference Gender Left Right Female Observed = 12

Observed vs. Expected Frequencies DCOVA Hand Preference Gender Left Right Female Observed = 12 Expected = 14. 4 Observed = 108 Expected = 105. 6 120 Male Observed = 24 Expected = 21. 6 Observed = 156 Expected = 158. 4 180 36 264 300 Copyright © 2011 Pearson Education 12 -11

The Chi-Square Test Statistic DCOVA Hand Preference Gender Left Right Female Observed = 12

The Chi-Square Test Statistic DCOVA Hand Preference Gender Left Right Female Observed = 12 Expected = 14. 4 Observed = 108 Expected = 105. 6 120 Male Observed = 24 Expected = 21. 6 Observed = 156 Expected = 158. 4 180 36 264 300 The test statistic is: Copyright © 2011 Pearson Education 12 -12

Decision Rule DCOVA Decision Rule: If > 3. 841, reject H 0, otherwise, do

Decision Rule DCOVA Decision Rule: If > 3. 841, reject H 0, otherwise, do not reject H 0 Here, 0. 05 0 Do not reject H 0 Reject H 0 20. 05 = 3. 841 Copyright © 2011 Pearson Education 2 = 0. 7576< = 3. 841, so we do not reject H 0 and conclude that there is not sufficient evidence that the two proportions are different at = 0. 05 12 -13

 2 Test for Differences Among More Than Two Proportions DCOVA n Extend the

2 Test for Differences Among More Than Two Proportions DCOVA n Extend the 2 test to the case with more than two independent populations: H 0: π 1 = π 2 = … = π c H 1: Not all of the πj are equal (j = 1, 2, …, c) Copyright © 2011 Pearson Education 12 -14

The Chi-Square Test Statistic DCOVA The Chi-square test statistic is: n Where: fo =

The Chi-Square Test Statistic DCOVA The Chi-square test statistic is: n Where: fo = observed frequency in a particular cell of the 2 x c table fe = expected frequency in a particular cell if H 0 is true (Assumed: each cell in the contingency table has expected frequency of at least 1) Copyright © 2011 Pearson Education 12 -15

Computing the Overall Proportion DCOVA The overall proportion is: n Expected cell frequencies for

Computing the Overall Proportion DCOVA The overall proportion is: n Expected cell frequencies for the c categories are calculated as in the 2 x 2 case, and the decision rule is the same: Decision Rule: If , reject H 0, otherwise, do not reject H 0 Copyright © 2011 Pearson Education Where is from the chisquared distribution with c – 1 degrees of freedom 12 -16

The Marascuilo Procedure DCOVA n n n Used when the null hypothesis of equal

The Marascuilo Procedure DCOVA n n n Used when the null hypothesis of equal proportions is rejected Enables you to make comparisons between all pairs Start with the observed differences, pj – pj’, for all pairs (for j ≠ j’) then compare the absolute difference to a calculated critical range Copyright © 2011 Pearson Education 12 -17

The Marascuilo Procedure (continued) DCOVA n Critical Range for the Marascuilo Procedure: n n

The Marascuilo Procedure (continued) DCOVA n Critical Range for the Marascuilo Procedure: n n (Note: the critical range is different for each pairwise comparison) A particular pair of proportions is significantly different if | pj – pj’| > critical range for j and j’ Copyright © 2011 Pearson Education 12 -18

Marascuilo Procedure Example DCOVA A University is thinking of switching to a trimester academic

Marascuilo Procedure Example DCOVA A University is thinking of switching to a trimester academic calendar. A random sample of 100 administrators, 50 students, and 50 faculty members were surveyed Opinion Administrators Students Faculty Favor 63 20 37 Oppose 37 30 13 100 50 50 Totals Using a 1% level of significance, which groups have a different attitude? Copyright © 2011 Pearson Education 12 -19

Chi-Square Test Results DCOVA H 0: π 1 = π 2 = π 3

Chi-Square Test Results DCOVA H 0: π 1 = π 2 = π 3 H 1: Not all of the πj are equal (j = 1, 2, 3) Chi-Square Test: Administrators, Students, Faculty Admin Favor Expected Oppose Total Copyright © 2011 Pearson Education Students Faculty 63 20 37 60 30 30 37 30 13 40 20 20 100 50 50 Total 120 Observed 80 200 12 -20

Marascuilo Procedure: Solution DCOVA Excel Output: compare At 1% level of significance, there is

Marascuilo Procedure: Solution DCOVA Excel Output: compare At 1% level of significance, there is evidence of a difference in attitude between students and faculty Copyright © 2011 Pearson Education 12 -21

 2 Test of Independence DCOVA n Similar to the 2 test for equality

2 Test of Independence DCOVA n Similar to the 2 test for equality of more than two proportions, but extends the concept to contingency tables with r rows and c columns H 0: The two categorical variables are independent (i. e. , there is no relationship between them) H 1: The two categorical variables are dependent (i. e. , there is a relationship between them) Copyright © 2011 Pearson Education 12 -22

 2 Test of Independence (continued) The Chi-square test statistic is: n DCOVA where:

2 Test of Independence (continued) The Chi-square test statistic is: n DCOVA where: fo = observed frequency in a particular cell of the r x c table fe = expected frequency in a particular cell if H 0 is true (Assumed: each cell in the contingency table has expected frequency of at least 1) Copyright © 2011 Pearson Education 12 -23

Expected Cell Frequencies DCOVA n Expected cell frequencies: Where: row total = sum of

Expected Cell Frequencies DCOVA n Expected cell frequencies: Where: row total = sum of all frequencies in the row column total = sum of all frequencies in the column n = overall sample size Copyright © 2011 Pearson Education 12 -24

Decision Rule n DCOVA The decision rule is If , reject H 0, otherwise,

Decision Rule n DCOVA The decision rule is If , reject H 0, otherwise, do not reject H 0 Where is from the chi-squared distribution with (r – 1)(c – 1) degrees of freedom Copyright © 2011 Pearson Education 12 -25

Example n DCOVA The meal plan selected by 200 students is shown below: Number

Example n DCOVA The meal plan selected by 200 students is shown below: Number of meals per week Class none Standing 20/week 10/week Fresh. 24 32 14 Total 70 Soph. 22 26 12 60 Junior 10 14 6 30 Senior 14 16 10 40 Total 70 88 42 200 Copyright © 2011 Pearson Education 12 -26

Example DCOVA (continued) n The hypothesis to be tested is: H 0: Meal plan

Example DCOVA (continued) n The hypothesis to be tested is: H 0: Meal plan and class standing are independent (i. e. , there is no relationship between them) H 1: Meal plan and class standing are dependent (i. e. , there is a relationship between them) Copyright © 2011 Pearson Education 12 -27

Example: Expected Cell Frequencies (continued) Observed: Class Standing DCOVA Number of meals per week

Example: Expected Cell Frequencies (continued) Observed: Class Standing DCOVA Number of meals per week Expected cell frequencies if H 0 is true: 20/wk 10/wk none Total Fresh. 24 32 14 70 Soph. 22 26 12 60 Junior 10 14 6 30 Senior 14 16 10 40 Class Standing Total 70 88 42 200 Example for one cell: 20/wk 10/wk none Total Fresh. 24. 5 30. 8 14. 7 70 Soph. 21. 0 26. 4 12. 6 60 Junior 10. 5 13. 2 6. 3 30 Senior 14. 0 17. 6 8. 4 40 70 88 42 200 Total Copyright © 2011 Pearson Education Number of meals per week 12 -28

Example: The Test Statistic (continued) n The test statistic value is: DCOVA = 12.

Example: The Test Statistic (continued) n The test statistic value is: DCOVA = 12. 592 from the chi-squared distribution with (4 – 1)(3 – 1) = 6 degrees of freedom Copyright © 2011 Pearson Education 12 -29

Example: Decision and Interpretation DCOVA (continued) Decision Rule: If > 12. 592, reject H

Example: Decision and Interpretation DCOVA (continued) Decision Rule: If > 12. 592, reject H 0, otherwise, do not reject H 0 Here, 0. 05 0 Do not reject H 0 Reject H 0 20. 05=12. 592 Copyright © 2011 Pearson Education 2 = 0. 709 < = 12. 592, so do not reject H 0 Conclusion: there is not sufficient evidence that meal plan and class standing are related at = 0. 05 12 -30

Mc. Nemar Test (Related Samples) DCOVA n n Used to determine if there is

Mc. Nemar Test (Related Samples) DCOVA n n Used to determine if there is a difference between proportions of two related samples Uses a test statistic the follows the normal distribution Copyright © 2011 Pearson Education 12 -31

Mc. Nemar Test (Related Samples) (continued) n DCOVA Consider a 2 X 2 contingency

Mc. Nemar Test (Related Samples) (continued) n DCOVA Consider a 2 X 2 contingency table: Condition 2 Condition 1 Yes No Totals Yes A B A+B No C D C+D A+C B+D n Totals Copyright © 2011 Pearson Education 12 -32

Mc. Nemar Test (Related Samples) (continued) n The sample proportions of interest are n

Mc. Nemar Test (Related Samples) (continued) n The sample proportions of interest are n Test DCOVA H 0: π 1 = π 2 (the two population proportions are equal) H 1: π 1 ≠ π 2 (the two population proportions are not equal) Copyright © 2011 Pearson Education 12 -33

Mc. Nemar Test (Related Samples) (continued) n The test statistic for the Mc. Nemar

Mc. Nemar Test (Related Samples) (continued) n The test statistic for the Mc. Nemar test: DCOVA where the test statistic Z is approximately normally distributed Copyright © 2011 Pearson Education 12 -34

Mc. Nemar Test Example n Suppose you survey 300 homeowners and ask them if

Mc. Nemar Test Example n Suppose you survey 300 homeowners and ask them if they are interested in refinancing their home. In an effort to generate business, a mortgage company improved their loan terms and reduced closing costs. The same homeowners were again surveyed. Determine if change in loan terms was effective in generating business for the mortgage company. The data are summarized as follows: Copyright © 2011 Pearson Education 12 -35

Mc. Nemar Test Example DCOVA Survey response after change Survey response before change Yes

Mc. Nemar Test Example DCOVA Survey response after change Survey response before change Yes No Totals Yes 118 2 120 No 22 158 180 140 160 300 Totals Test the hypothesis (at the 0. 05 level of significance): H 0: π1 ≥ π2: The change in loan terms was ineffective H 1: π1 < π2: The change in loan terms increased business Copyright © 2011 Pearson Education 12 -36

Mc. Nemar Test Example Survey response before change DCOVA Survey response after change The

Mc. Nemar Test Example Survey response before change DCOVA Survey response after change The critical value (0. 05 significance) is Z 0. 05 = -1. 645 Yes The test statistic is: No Totals Yes 118 2 120 No 22 158 180 140 160 300 Totals Since ZSTAT = -4. 08 < -1. 645, you reject H 0 and conclude that the change in loan terms significantly increase business for the mortgage company. Copyright © 2011 Pearson Education 12 -37

Wilcoxon Rank-Sum Test for Differences in 2 Medians DCOVA n Test two independent population

Wilcoxon Rank-Sum Test for Differences in 2 Medians DCOVA n Test two independent population medians n Populations need not be normally distributed n Distribution free procedure n Used when only rank data are available n Must use normal approximation if either of the sample sizes is larger than 10 Copyright © 2011 Pearson Education 12 -38

Wilcoxon Rank-Sum Test: Small Samples DCOVA n n Can use when both n 1

Wilcoxon Rank-Sum Test: Small Samples DCOVA n n Can use when both n 1 , n 2 ≤ 10 Assign ranks to the combined n 1 + n 2 sample observations n n n If unequal sample sizes, let n 1 refer to smaller-sized sample Smallest value rank = 1, largest value rank = n 1 + n 2 Assign average rank for ties n Sum the ranks for each sample: T 1 and T 2 n Obtain test statistic, T 1 (from smaller sample) Copyright © 2011 Pearson Education 12 -39

Checking the Rankings n n DCOVA The sum of the rankings must satisfy the

Checking the Rankings n n DCOVA The sum of the rankings must satisfy the formula below Can use this to verify the sums T 1 and T 2 where n = n 1 + n 2 Copyright © 2011 Pearson Education 12 -40

Wilcoxon Rank-Sum Test: Hypothesis and Decision Rule DCOVA M 1 = median of population

Wilcoxon Rank-Sum Test: Hypothesis and Decision Rule DCOVA M 1 = median of population 1; M 2 = median of population 2 Test statistic = T 1 (Sum of ranks from smaller sample) Two-Tail Test H 0: M 1 = M 2 H 1: M 1 ¹ M 2 Reject Do Not Reject T 1 L Reject T 1 U Reject H 0 if T 1 ≤ T 1 L Left-Tail Test H 0: M 1 ³ M 2 H 1: M 1 < M 2 Reject Do Not Reject T 1 L Reject H 0 if T 1 ≤ T 1 L Right-Tail Test H 0: M 1 £ M 2 H 1: M 1 > M 2 Do Not Reject T 1 U Reject H 0 if T 1 ≥ T 1 U or if T 1 ≥ T 1 U Copyright © 2011 Pearson Education 12 -41

Wilcoxon Rank-Sum Test: Small Sample Example DCOVA Sample data are collected on the capacity

Wilcoxon Rank-Sum Test: Small Sample Example DCOVA Sample data are collected on the capacity rates (% of capacity) for two factories. Are the median operating rates for two factories the same? n For factory A, the rates are 71, 82, 77, 94, 88 n For factory B, the rates are 85, 82, 97 Test for equality of the population medians at the 0. 05 significance level Copyright © 2011 Pearson Education 12 -42

Wilcoxon Rank-Sum Test: Small Sample Example DCOVA (continued) Ranked Capacity values: Tie in 3

Wilcoxon Rank-Sum Test: Small Sample Example DCOVA (continued) Ranked Capacity values: Tie in 3 rd and 4 th places Capacity Factory A Rank Factory B Factory A 71 1 77 2 82 3. 5 85 5 88 6 92 94 7 8 97 Rank Sums: Copyright © 2011 Pearson Education Factory B 9 20. 5 24. 5 12 -43

Wilcoxon Rank-Sum Test: Small Sample Example DCOVA (continued) Factory B has the smaller sample

Wilcoxon Rank-Sum Test: Small Sample Example DCOVA (continued) Factory B has the smaller sample size, so the test statistic is the sum of the Factory B ranks: T 1 = 24. 5 The sample sizes are: n 1 = 4 (factory B) n 2 = 5 (factory A) The level of significance is =. 05 Copyright © 2011 Pearson Education 12 -44

Wilcoxon Rank-Sum Test: Small Sample Example DCOVA (continued) n Lower and Upper Critical Values

Wilcoxon Rank-Sum Test: Small Sample Example DCOVA (continued) n Lower and Upper Critical Values for T 1 from Appendix table E. 8: n 2 n 1 One. Tailed Two. Tailed 4 5 . 05 . 10 12, 28 19, 36 . 025 . 05 11, 29 17, 38 . 01 . 02 10, 30 16, 39 . 005 . 01 --, -- 15, 40 4 5 6 Copyright © 2011 Pearson Education T 1 L = 11 and T 1 U = 29 12 -45

Wilcoxon Rank-Sum Test: Small Sample Solution DCOVA (continued) n n =. 05 n 1

Wilcoxon Rank-Sum Test: Small Sample Solution DCOVA (continued) n n =. 05 n 1 = 4 , n 2 = 5 Test Statistic (Sum of ranks from smaller sample): Two-Tail Test H 0: M 1 = M 2 H 1: M 1 ¹ M 2 T 1 = 24. 5 Reject Do Not Reject T 1 L=11 Reject T 1 U=29 Reject H 0 if T 1 ≤ T 1 L=11 or if T 1 ≥ T 1 U=29 Copyright © 2011 Pearson Education Decision: Do not reject at = 0. 05 Conclusion: There is not enough evidence to prove that the medians are not equal. 12 -46

Wilcoxon Rank-Sum Test (Large Sample) DCOVA n For large samples, the test statistic T

Wilcoxon Rank-Sum Test (Large Sample) DCOVA n For large samples, the test statistic T 1 is approximately normal with mean and standard deviation : n n n Must use the normal approximation if either n 1 or n 2 > 10 Assign n 1 to be the smaller of the two sample sizes Should not use the normal approximation for small samples Copyright © 2011 Pearson Education 12 -47

Wilcoxon Rank-Sum Test (Large Sample) (continued) n n The Z test statistic is DCOVA

Wilcoxon Rank-Sum Test (Large Sample) (continued) n n The Z test statistic is DCOVA Where ZSTAT approximately follows a standardized normal distribution Copyright © 2011 Pearson Education 12 -48

Wilcoxon Rank-Sum Test: Normal Approximation Example DCOVA Use the setting of the prior example:

Wilcoxon Rank-Sum Test: Normal Approximation Example DCOVA Use the setting of the prior example: The sample sizes were: n 1 = 4 (factory B) n 2 = 5 (factory A) The level of significance was α =. 05 The test statistic was T 1 = 24. 5 Copyright © 2011 Pearson Education 12 -49

Wilcoxon Rank-Sum Test: Normal Approximation Example (continued) DCOVA n n The test statistic is

Wilcoxon Rank-Sum Test: Normal Approximation Example (continued) DCOVA n n The test statistic is Z = 1. 10 is not greater than the critical Z value of 1. 96 (for α =. 05) so we do not reject H 0 – there is not sufficient evidence that the medians are not equal Copyright © 2011 Pearson Education 12 -50

Kruskal-Wallis Rank Test n n n DCOVA Tests the equality of more than 2

Kruskal-Wallis Rank Test n n n DCOVA Tests the equality of more than 2 population medians Use when the normality assumption for one-way ANOVA is violated Assumptions: n n n The samples are random and independent Variables have a continuous distribution The data can be ranked Populations have the same variability Populations have the same shape Copyright © 2011 Pearson Education 12 -51

Kruskal-Wallis Test Procedure DCOVA n Obtain rankings for each value n n In event

Kruskal-Wallis Test Procedure DCOVA n Obtain rankings for each value n n In event of tie, each of the tied values gets the average rank Sum the rankings for data from each of the c groups n Compute the H test statistic Copyright © 2011 Pearson Education 12 -52

Kruskal-Wallis Test Procedure (continued) n The Kruskal-Wallis H-test statistic: DCOVA (with c – 1

Kruskal-Wallis Test Procedure (continued) n The Kruskal-Wallis H-test statistic: DCOVA (with c – 1 degrees of freedom) where: n = sum of sample sizes in all groups c = Number of groups Tj = Sum of ranks in the jth group nj = Number of values in the jth group (j = 1, 2, … , c) Copyright © 2011 Pearson Education 12 -53

Kruskal-Wallis Test Procedure (continued) DCOVA n Complete the test by comparing the calculated H

Kruskal-Wallis Test Procedure (continued) DCOVA n Complete the test by comparing the calculated H value to a critical 2 value from the chi-square distribution with c – 1 degrees of freedom n 0 Do not reject H 0 2α Reject H 0 Copyright © 2011 Pearson Education Decision rule n 2 n Reject H 0 if test statistic H > 2α Otherwise do not reject H 0 12 -54

Kruskal-Wallis Example n DCOVA Do different departments have different class sizes? Class size (Math,

Kruskal-Wallis Example n DCOVA Do different departments have different class sizes? Class size (Math, M) Class size (English, E) Class size (Biology, B) 23 45 54 78 66 55 60 72 45 70 30 40 18 34 44 Copyright © 2011 Pearson Education 12 -55

Kruskal-Wallis Example DCOVA (continued) n Do different departments have different class sizes? Class size

Kruskal-Wallis Example DCOVA (continued) n Do different departments have different class sizes? Class size Ranking (Math, M) (English, E) (Biology, B) 23 41 54 78 66 2 6 9 15 12 = 44 Copyright © 2011 Pearson Education 55 60 72 45 70 10 11 14 8 13 = 56 30 40 18 34 44 Ranking 3 5 1 4 7 = 20 12 -56

Kruskal-Wallis Example DCOVA (continued) n The H statistic is Copyright © 2011 Pearson Education

Kruskal-Wallis Example DCOVA (continued) n The H statistic is Copyright © 2011 Pearson Education 12 -57

Kruskal-Wallis Example DCOVA (continued) n Compare H = 7. 12 to the critical value

Kruskal-Wallis Example DCOVA (continued) n Compare H = 7. 12 to the critical value from the chi-square distribution for 3 – 1 = 2 degrees of freedom and = 0. 05: Since H = 7. 12 > reject H 0 , There is sufficient evidence to reject that the population medians are all equal Copyright © 2011 Pearson Education 12 -58

Chapter Summary n n n Developed and applied the 2 test for the difference

Chapter Summary n n n Developed and applied the 2 test for the difference between two proportions Developed and applied the 2 test for differences in more than two proportions Applied the Marascuilo procedure for comparing all pairs of proportions after rejecting a 2 test Examined the 2 test for independence Applied the Mc. Nemar test for proportions from two related samples Copyright © 2011 Pearson Education 12 -59

Chapter Summary (continued) n n Used the Wilcoxon rank sum test for two population

Chapter Summary (continued) n n Used the Wilcoxon rank sum test for two population medians Applied the Kruskal-Wallis H-test for multiple population medians Copyright © 2011 Pearson Education 12 -60

Statistics for Managers using Microsoft Excel 6 th Edition On Line Topic Chi-Square Tests

Statistics for Managers using Microsoft Excel 6 th Edition On Line Topic Chi-Square Tests for The Variance or Standard Deviation Copyright © 2011 Pearson Education 12 -61

Learning Objectives In this topic, you learn: § How to use the Chi-Square to

Learning Objectives In this topic, you learn: § How to use the Chi-Square to test for a variance or standard deviation Copyright © 2011 Pearson Education 12 -62

Chi-Square Test for a Variance or Standard Deviation DCOVA n A χ2 test statistic

Chi-Square Test for a Variance or Standard Deviation DCOVA n A χ2 test statistic is used to test whether or not the population variance or standard deviation is equal to a specified value: H 0: σ 2 = σ 02 H a: σ 2 ≠ σ 02 Where n = sample size S 2 = sample variance σ2 = hypothesized population variance follows a chi-square distribution with d. f. = n - 1 Reject H 0 if Copyright © 2011 Pearson Education > or if < 12 -63

Chi-Square Test For A Variance: An Example DCOVA Suppose you have gathered a random

Chi-Square Test For A Variance: An Example DCOVA Suppose you have gathered a random sample of size 25 and obtained a sample standard deviation of s = 7 and want to do the following hypothesis test: H 0: σ2 = 81 Ha: σ2 ≠ 81 Since H 0 Copyright © 2011 Pearson Education < 14. 185 < you fail to reject 12 -64

Topic Summary § Examined how to use the Chi-Square to test for a variance

Topic Summary § Examined how to use the Chi-Square to test for a variance or standard deviation Copyright © 2011 Pearson Education 12 -65

All rights reserved. No part of this publication may be reproduced, stored in a

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2011 Pearson Education 12 -66