Exam 16: Analysis of Categorical Data

Anita Gill recently assumed responsibility for a large investment portfolio.She wonders whether industry sector influences investment objective.Her staff prepared the following contingency table from a random sample of 200 common stocks: Using $\alpha$ = .05, the critical chi-square value is ___.

Sami Wilson believes that number of cars arriving at his Spotless Car Wash follow a Poisson distribution.He collected a random sample and constructed the following frequency distribution to test his hypothesis: Using $\alpha$ = 0.05, the critical value of chi-square for this goodness-of-fit test is ___.

A variable contains five categories.It is expected that data are uniformly distributed across these five categories.To test this, a sample of observed data is gathered on this variable resulting in frequencies of 26, 10, 17, 21, and 26.Using $\alpha$ = .10, the appropriate decision is ___.

Anita Gill recently assumed responsibility for a large investment portfolio.She wonders whether industry sector influences investment objective.Her staff prepared the following contingency table from a random sample of 200 common stocks: Anita's null hypothesis is ___.

Ophelia McPhee, VP of Consumer Credit, Confederation First Bank (CFB), monitors the default rate on personal loans among CFB members.One of her standards is "no more than 5% of personal loans should be in default." On each Friday, the default rate is calculated for a sample of 500 personal loans.Last Friday's sample contained 30 defaulted loans.Using $\alpha$ = 0.01, critical chi-square value is ___.

Catherine Lee, Director of Marketing Research, is evaluating consumer acceptance of alternative toothpaste packages.She wonders whether acceptance is influenced by children in the household.Her staff prepared the following contingency table from a random sample of 100 households: Catherine's null hypothesis is ___.

Sam Kenny, Director of Media Research, is analyzing subscribers to the Life in the Rockies magazine.He wonders whether subscriptions are influenced by the head of household's employment classification.His staff prepared the following contingency table from a random sample of 300 households: Using $\alpha$ = .05, the appropriate decision is ___.

A chi-square goodness-of-fit test to determine if the observed frequencies in eight categories are uniformly distributed has seven degrees of freedom.

Anita Gill recently assumed responsibility for a large investment portfolio.She wonders whether industry sector influences investment objective.Her staff prepared the following contingency table from a random sample of 200 common stocks: Using $\alpha$ = .01, the critical chi-square value is ___.

A variable contains four categories.It is expected that data are uniformly distributed across these four categories.To test this, a sample of observed data is gathered on this variable resulting in frequencies of 22, 35, 32, and 21.Using $\alpha$ = .05, the critical chi-square value is ___.

The null hypothesis in a chi-square goodness-of-fit test is that the observed distribution is same as the expected distribution.

A gasoline distributor wonders whether an individual's income levels influences the grade of gasoline purchased. Using $\alpha$ = .01, the critical chi-square value is ___.

The decision rule in a chi-square goodness-of-fit test is to reject the null hypothesis if the computed chi-square is greater than the table chi-square.

Ophelia McPhee, VP of Consumer Credit, Confederation First Bank (CFB), monitors the default rate on personal loans among CFB members.One of her standards is "no more than 5% of personal loans should be in default." On each Friday, the default rate is calculated for a sample of 500 personal loans.Last Friday's sample contained 30 defaulted loans.Using $\alpha$ = 0.01, the appropriate decision is ___.

A variable contains five categories.It is expected that data are uniformly distributed across these five categories.To test this, a sample of observed data is gathered on this variable resulting in frequencies of 26, 10, 17, 21, and 26.Using $\alpha$ = .01, the critical chi-square value is ___.

The null hypothesis for a chi-square test of independence is that the two variables are not related.

Use the following set of observed frequencies to test the independence of the two variables.Variable one has values of 'A' and 'B'; variable two has values of 'C', 'D', and 'E'. Using $\alpha$ = 0.05, the expected frequency in row 1 (A)column 1 (C)is ___.

A gasoline distributor wonders whether an individual's income levels influences the grade of gasoline purchased. The null hypothesis is ___.

Contingency tables should not be used with expected cell frequencies ___.

A contingency table has five rows and six columns.When applying a chi-square test of independence to this table, the number of degrees of freedom is ___.