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guodness-of-fit test examines the null hypothesis that the prob- abilities of th

ID: 3364122 • Letter: G

Question

guodness-of-fit test examines the null hypothesis that the prob- abilities of the k possible outcomes for a categorical variable are equal to a par- ticular set of values, pi. P2.... Pk. The data for the test are the observed counts in the k cells,2 Expected cell counts under the null hypothesis ane expected count npi where n is the total number of observations. The chi-square statistic measures how much the observed cell counts differ from the expected cell counts. The formula for the statistic is · (observed count expected count) expected count The degrees of freedom are k - 1, and P-values are computed from the chi-square distribution. Use this procedure when the expected counts are all 5 or more. page 458; for 9.3 and 9.6, see page 462 for 9.9 and 9.10, ge 466: for 9.12 14, see page 473; r 9.16, see (a) Use numerical summaries to describe the data. Give a justification for the summaries that you choose. (b) State appropriate null and alternative hypotheses for this setting (c) Give the results of the significance test for these data. Be sure to include the test statistic, the degrees of freedom, and the P-value. (d) Make a mosaic plot if you have the needed software. (e) Write a short summary of what you have found including your conclusion. tudy of tipping nship between the erver and whether Here are the data articipated in 9.18 To tip or not to tip: women customers. Refer to the previous exercise. Here are the data for the 304 female customers who participated in the study. TIPPEM Shirt color t color Yellow Blue Green 25 42 Tip Black White Red Yellow Blue Green Yes No 33 32 38 31 31 37 18 18 16 15 19 27 43 31

Explanation / Answer

Solution:

Here, we have to use Chi square test for independence of two categorical variables. The null and alternative hypothesis for this test is given as below:

Null hypothesis: H0: Two categorical variables shirt color and tip are independent from each other.

Alternative hypothesis: Ha: Two categorical variables shirt color and tip are not independent from each other.

The level of significance or alpha value for this test is given as 0.05 or 5%.

The test statistic formula for this test is given as below:

Chi square = (O - E)^2/E

Where, O is observed frequencies and E is expected frequencies.

Expected frequencies are calculated as below:

Expected frequency = E = Row total * Column total / Grand total

Calculation tables for this test are summarized as below:

Observed Frequencies

Shirt Color

Tip

Black

White

Red

Yellow

Blue

Green

Total

Yes

18

16

15

19

16

18

102

No

33

32

38

31

31

37

202

Total

51

48

53

50

47

55

304

Expected Frequencies

Shirt Color

Tip

Black

White

Red

Yellow

Blue

Green

Total

Yes

17.11184

16.10526

17.78289

16.77632

15.76974

18.45395

102

No

33.88816

31.89474

35.21711

33.22368

31.23026

36.54605

202

Total

51

48

53

50

47

55

304

(O - E)

0.888158

-0.10526

-2.78289

2.223684

0.230263

-0.45395

-0.88816

0.105263

2.782895

-2.22368

-0.23026

0.453947

(O - E)^2/E

0.046098

0.000688

0.435503

0.294747

0.003362

0.011167

0.023277

0.000347

0.219907

0.148833

0.001698

0.005639

Number of rows = r = 2

Number of columns = c = 6

Degrees of freedom = (r – 1)*(c – 1) = (2 – 1)*(6 – 1) = 1*5 = 5

Level of significance = = 0.05

Test statistic = Chi square = (O - E)^2/E = 1.191266

Critical value = 11.0705

P-value = 0.945712

(Critical value and P-value are calculated by using Chi square table or excel)

P-value > = 0.05

So, we do not reject the null hypothesis that the two categorical variables shirt color and tip are independent.

There is sufficient evidence to conclude that the two categorical variables shirt color and tip are independent.

Observed Frequencies

Shirt Color

Tip

Black

White

Red

Yellow

Blue

Green

Total

Yes

18

16

15

19

16

18

102

No

33

32

38

31

31

37

202

Total

51

48

53

50

47

55

304