SlideShare une entreprise Scribd logo
1  sur  21
Statistics 3 The Chi Squared ( χ 2 ) Test   - Lesson 1 - ,[object Object],[object Object],[object Object],[object Object]
Purpose of the Chi Squared Test The purpose of the chi squared test is to see whether observed experimental data is a  ‘good fit’  with theoretical expected results. The  χ 2  statistic is calculated in the following way:
Source:   http://en.wikipedia.org/wiki/File:Chi-square_distributionPDF.png
Notes on the Chi Squared Distribution 1.)  ν  (the number of degrees of freedom) is calculated from the number of classes – the number of restrictions. 2.) A restriction is defined as any value that is derived from the observed data set. 3.) The chi squared distribution is continuous and thus offers poor approximation when dealing with small frequencies. When calculating  χ 2  we have to combine any classes which contain expected frequencies of less than 5 elements. 4.) As with most statistical distributions, we do not need to concern ourselves with calculating by hand as all critical values are tabulated for easy reference.
Lesson 1 - Example Question I The table below shows the results when a die is rolled 120 times. Conduct a chi squared test to see whether the die is fair or not at the 5% significance level. 24 20 18 14 29 15 Freq 6 5 4 3 2 1 Score
Lesson 1 - Example Question II  The table below shows the results of an experiment in which four coins thrown 160 times and the number of heads recorded. a.) Fit a Bin (4, ½) distribution to the data. b.) Test the goodness of fit of the Bin (4, ½) model using a chi squared test at the 5% significance level.  10 35 54 46 15 Freq 4 3 2 1 0 Score
Practice Questions  Statistics 3 and 4 by Jane Miller Page 121, Exercise 5A Questions 1 and 3
Statistics 3 The Chi Squared ( χ 2 ) Test   - Lesson 2 - ,[object Object],[object Object],[object Object]
Statistics 3 The Chi Squared ( χ 2 ) Test   - Lesson 3 - ,[object Object],[object Object],[object Object],[object Object]
Lesson 3 - Example Question  The table below shows the number of calls arriving at a switchboard in time intervals of 5 minutes. Test at the 5% significance level whether the Poisson distribution provides a good model for this data. 0 2 4 23 71 Freq 4 or more 3 2 1 0 No
Practice Questions  Statistics 3 and 4 by Jane Miller Page 121, Exercise 5A Questions  11 (part a only) (Poisson) 2 (Ratio) 12 (Geometric) 13 (Poisson)
Statistics 3 The Chi Squared ( χ 2 ) Test   - Lesson 4 - ,[object Object],[object Object]
Lesson 4 - Example Question  The height in centimetres gained by a conifer in its first year after planting is denoted by the random variable H. The value of H is measured for a random sample of 86 conifers and the results obtained are summarised in the table below. Assuming that H is modelled by a N(50, 15 2 ) distribution, test at the 5% level, the goodness of fit of the model. 12 18 28 18 10 Obs Freq >65 55-65 45-55 35-45 <35 H
Practice Questions  Statistics 3 and 4 by Jane Miller Page 128, Exercise 5B Question 1 onwards
Statistics 3 The Chi Squared ( χ 2 ) Test   - Lesson 5 - ,[object Object],[object Object],[object Object],[object Object]
Degrees of Freedom The number of degrees of freedom in a h x k contingency table is given by ν  = (h – 1) x (k – 1).
Lesson 5 - Example Question I Is income level independent of method of transport? 693 129 102 462 Total 266 29 32 205 Large 312 64 49 199 Average 115 36 21 58 Small Income Level Total Self Public Car Method of Transport
Lesson 5 - Example Question II A university sociology department believes that students with a good grade in A Level General Studies tend to do well on sociology degree courses. To check this it has collected information on a random sample of 100 who had just graduated and who also had taken general studies at A Level. The students performance in General Studies was divided into two categories, those with grades A or B and ‘others’. Their degrees were recorded as Class I, II, III or fail. The data is given in the table below. Test at the 1% level, the hypothesis that degree performance is independent of A level performance in General Studies. 100 5 30 50 15 Total 60 4 24 28 4 Others 40 1 6 22 11 Grade A or B Total Fail Class III Class II Class I
Yates Correction χ 2  is a continuous distribution whilst  χ 2 calc   is not. In the case of a 2 x 2 contingency table for which  ν  = 1, the agreement between the two distributions can be improved by applying a continuity correction called Yates Correction. This involves reducing each value of |O – E| by 0.5
Lesson 5 - Example Question III A random sample of 930 companies quoted on the stock exchange revealed the information summarised in the table below, which shows the distribution of these companies classified according to two attributes. In this table, D indicates that the company has diversified its product range during the previous financial year, and P indicates that there has been a significant rise in profits during the previous financial year. The null hypothesis is that D and P are independent. Show that this can rejected at all reasonable significance levels. 377 299 Not P 106 148 P Not D D
Practice Questions  ,[object Object],[object Object],[object Object],[object Object],[object Object]

Contenu connexe

Tendances

Presentation on GMM
Presentation on GMMPresentation on GMM
Presentation on GMM
Moses sichei
 
Inferential statistics.ppt
Inferential statistics.pptInferential statistics.ppt
Inferential statistics.ppt
Nursing Path
 
The kolmogorov smirnov test
The kolmogorov smirnov testThe kolmogorov smirnov test
The kolmogorov smirnov test
Subhradeep Mitra
 

Tendances (20)

Presentation on GMM
Presentation on GMMPresentation on GMM
Presentation on GMM
 
Sampling theory
Sampling theorySampling theory
Sampling theory
 
Introduction to Regression Analysis
Introduction to Regression AnalysisIntroduction to Regression Analysis
Introduction to Regression Analysis
 
Statistical tests
Statistical tests Statistical tests
Statistical tests
 
Correlation and regression
Correlation and regressionCorrelation and regression
Correlation and regression
 
Sem with amos ii
Sem with amos iiSem with amos ii
Sem with amos ii
 
Chi square test final
Chi square test finalChi square test final
Chi square test final
 
Inferential statistics.ppt
Inferential statistics.pptInferential statistics.ppt
Inferential statistics.ppt
 
Linear Regression Analysis method of Forecasting ,:- Management principle and...
Linear Regression Analysis method of Forecasting ,:- Management principle and...Linear Regression Analysis method of Forecasting ,:- Management principle and...
Linear Regression Analysis method of Forecasting ,:- Management principle and...
 
Stat 3203 -cluster and multi-stage sampling
Stat 3203 -cluster and multi-stage samplingStat 3203 -cluster and multi-stage sampling
Stat 3203 -cluster and multi-stage sampling
 
Review of Statistics
Review of StatisticsReview of Statistics
Review of Statistics
 
Multicollinearity
MulticollinearityMulticollinearity
Multicollinearity
 
Sampling methods PPT
Sampling methods PPTSampling methods PPT
Sampling methods PPT
 
Econometrics
EconometricsEconometrics
Econometrics
 
Probability distribution
Probability distributionProbability distribution
Probability distribution
 
Assumptions of Linear Regression - Machine Learning
Assumptions of Linear Regression - Machine LearningAssumptions of Linear Regression - Machine Learning
Assumptions of Linear Regression - Machine Learning
 
The kolmogorov smirnov test
The kolmogorov smirnov testThe kolmogorov smirnov test
The kolmogorov smirnov test
 
Cluster Sampling
Cluster SamplingCluster Sampling
Cluster Sampling
 
Stat 1163 -correlation and regression
Stat 1163 -correlation and regressionStat 1163 -correlation and regression
Stat 1163 -correlation and regression
 
Ali, Redescending M-estimator
Ali, Redescending M-estimator Ali, Redescending M-estimator
Ali, Redescending M-estimator
 

En vedette

03 The Chi Squared Test
03 The Chi Squared Test03 The Chi Squared Test
03 The Chi Squared Test
Jaya Kumar
 
Hrm practices in uk
Hrm practices in ukHrm practices in uk
Hrm practices in uk
PARIMITTAL10
 

En vedette (20)

Chi square test
Chi square testChi square test
Chi square test
 
Chi square
Chi squareChi square
Chi square
 
Chi square test
Chi square test Chi square test
Chi square test
 
Chi – square test
Chi – square testChi – square test
Chi – square test
 
Chi squared test
Chi squared testChi squared test
Chi squared test
 
Chi Squared
Chi SquaredChi Squared
Chi Squared
 
Chi square test final presentation
Chi square test final presentationChi square test final presentation
Chi square test final presentation
 
The Chi-Squared Test
The Chi-Squared TestThe Chi-Squared Test
The Chi-Squared Test
 
Chi square test
Chi square testChi square test
Chi square test
 
03 The Chi Squared Test
03 The Chi Squared Test03 The Chi Squared Test
03 The Chi Squared Test
 
Chisquare
ChisquareChisquare
Chisquare
 
Auto Correlation Presentation
Auto Correlation PresentationAuto Correlation Presentation
Auto Correlation Presentation
 
Chi square
Chi squareChi square
Chi square
 
Z test
Z testZ test
Z test
 
Hrm practices in uk
Hrm practices in ukHrm practices in uk
Hrm practices in uk
 
Path analysis
Path analysisPath analysis
Path analysis
 
Anomaly detection, part 1
Anomaly detection, part 1Anomaly detection, part 1
Anomaly detection, part 1
 
Chi squared test
Chi squared testChi squared test
Chi squared test
 
Chi square analysis
Chi square analysisChi square analysis
Chi square analysis
 
Parametric and non parametric test
Parametric and non parametric testParametric and non parametric test
Parametric and non parametric test
 

Similaire à Chi Squared Test

Statistics practice for finalBe sure to review the following.docx
Statistics practice for finalBe sure to review the following.docxStatistics practice for finalBe sure to review the following.docx
Statistics practice for finalBe sure to review the following.docx
dessiechisomjj4
 
JKN 10 Inference 2 Populations.Consider the following set of d.docx
JKN 10 Inference 2 Populations.Consider the following set of d.docxJKN 10 Inference 2 Populations.Consider the following set of d.docx
JKN 10 Inference 2 Populations.Consider the following set of d.docx
christiandean12115
 
Part 1 of 16 -Question 1 of 231.0 PointsThe data presented i.docx
Part 1 of 16 -Question 1 of 231.0 PointsThe data presented i.docxPart 1 of 16 -Question 1 of 231.0 PointsThe data presented i.docx
Part 1 of 16 -Question 1 of 231.0 PointsThe data presented i.docx
odiliagilby
 
501 assignment1
501 assignment1501 assignment1
501 assignment1
Wa Ain
 
Confidence Intervals And The T Distribution
Confidence Intervals And The T   DistributionConfidence Intervals And The T   Distribution
Confidence Intervals And The T Distribution
Darren Barton
 
Statistics question and answers with mcqs
Statistics question and answers with mcqsStatistics question and answers with mcqs
Statistics question and answers with mcqs
NandiniYadav69
 

Similaire à Chi Squared Test (20)

Statistics practice for finalBe sure to review the following.docx
Statistics practice for finalBe sure to review the following.docxStatistics practice for finalBe sure to review the following.docx
Statistics practice for finalBe sure to review the following.docx
 
Hypothesis testing part i
Hypothesis testing part iHypothesis testing part i
Hypothesis testing part i
 
Chi square
Chi squareChi square
Chi square
 
qm2CHAP12.ppt
qm2CHAP12.pptqm2CHAP12.ppt
qm2CHAP12.ppt
 
Chisquare Test
Chisquare Test Chisquare Test
Chisquare Test
 
JKN 10 Inference 2 Populations.Consider the following set of d.docx
JKN 10 Inference 2 Populations.Consider the following set of d.docxJKN 10 Inference 2 Populations.Consider the following set of d.docx
JKN 10 Inference 2 Populations.Consider the following set of d.docx
 
Chi- Square test.pptx
Chi- Square test.pptxChi- Square test.pptx
Chi- Square test.pptx
 
Goodness of fit (ppt)
Goodness of fit (ppt)Goodness of fit (ppt)
Goodness of fit (ppt)
 
ELEMENTS OF STATISTICS / TUTORIALOUTLET DOT COM
ELEMENTS OF STATISTICS / TUTORIALOUTLET DOT COMELEMENTS OF STATISTICS / TUTORIALOUTLET DOT COM
ELEMENTS OF STATISTICS / TUTORIALOUTLET DOT COM
 
Practice Test 1
Practice Test 1Practice Test 1
Practice Test 1
 
Chapter12
Chapter12Chapter12
Chapter12
 
Part 1 of 16 -Question 1 of 231.0 PointsThe data presented i.docx
Part 1 of 16 -Question 1 of 231.0 PointsThe data presented i.docxPart 1 of 16 -Question 1 of 231.0 PointsThe data presented i.docx
Part 1 of 16 -Question 1 of 231.0 PointsThe data presented i.docx
 
Categorical Data and Statistical Analysis
Categorical Data and Statistical AnalysisCategorical Data and Statistical Analysis
Categorical Data and Statistical Analysis
 
Day 3 SPSS
Day 3 SPSSDay 3 SPSS
Day 3 SPSS
 
Hypothesis testing chi square goodness of fit test
Hypothesis testing chi square goodness of fit testHypothesis testing chi square goodness of fit test
Hypothesis testing chi square goodness of fit test
 
501 assignment1
501 assignment1501 assignment1
501 assignment1
 
Confidence Intervals And The T Distribution
Confidence Intervals And The T   DistributionConfidence Intervals And The T   Distribution
Confidence Intervals And The T Distribution
 
Chapter12
Chapter12Chapter12
Chapter12
 
Statistics question and answers with mcqs
Statistics question and answers with mcqsStatistics question and answers with mcqs
Statistics question and answers with mcqs
 
Analyzing experimental research data
Analyzing experimental research dataAnalyzing experimental research data
Analyzing experimental research data
 

Dernier

Seal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptxSeal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptx
negromaestrong
 
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in DelhiRussian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
kauryashika82
 
Beyond the EU: DORA and NIS 2 Directive's Global Impact
Beyond the EU: DORA and NIS 2 Directive's Global ImpactBeyond the EU: DORA and NIS 2 Directive's Global Impact
Beyond the EU: DORA and NIS 2 Directive's Global Impact
PECB
 
Making and Justifying Mathematical Decisions.pdf
Making and Justifying Mathematical Decisions.pdfMaking and Justifying Mathematical Decisions.pdf
Making and Justifying Mathematical Decisions.pdf
Chris Hunter
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
heathfieldcps1
 
The basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptxThe basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptx
heathfieldcps1
 
1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdf
QucHHunhnh
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
QucHHunhnh
 

Dernier (20)

Food Chain and Food Web (Ecosystem) EVS, B. Pharmacy 1st Year, Sem-II
Food Chain and Food Web (Ecosystem) EVS, B. Pharmacy 1st Year, Sem-IIFood Chain and Food Web (Ecosystem) EVS, B. Pharmacy 1st Year, Sem-II
Food Chain and Food Web (Ecosystem) EVS, B. Pharmacy 1st Year, Sem-II
 
Seal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptxSeal of Good Local Governance (SGLG) 2024Final.pptx
Seal of Good Local Governance (SGLG) 2024Final.pptx
 
General Principles of Intellectual Property: Concepts of Intellectual Proper...
General Principles of Intellectual Property: Concepts of Intellectual  Proper...General Principles of Intellectual Property: Concepts of Intellectual  Proper...
General Principles of Intellectual Property: Concepts of Intellectual Proper...
 
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in DelhiRussian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
Russian Escort Service in Delhi 11k Hotel Foreigner Russian Call Girls in Delhi
 
Ecological Succession. ( ECOSYSTEM, B. Pharmacy, 1st Year, Sem-II, Environmen...
Ecological Succession. ( ECOSYSTEM, B. Pharmacy, 1st Year, Sem-II, Environmen...Ecological Succession. ( ECOSYSTEM, B. Pharmacy, 1st Year, Sem-II, Environmen...
Ecological Succession. ( ECOSYSTEM, B. Pharmacy, 1st Year, Sem-II, Environmen...
 
Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024Mehran University Newsletter Vol-X, Issue-I, 2024
Mehran University Newsletter Vol-X, Issue-I, 2024
 
Beyond the EU: DORA and NIS 2 Directive's Global Impact
Beyond the EU: DORA and NIS 2 Directive's Global ImpactBeyond the EU: DORA and NIS 2 Directive's Global Impact
Beyond the EU: DORA and NIS 2 Directive's Global Impact
 
Making and Justifying Mathematical Decisions.pdf
Making and Justifying Mathematical Decisions.pdfMaking and Justifying Mathematical Decisions.pdf
Making and Justifying Mathematical Decisions.pdf
 
Key note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdfKey note speaker Neum_Admir Softic_ENG.pdf
Key note speaker Neum_Admir Softic_ENG.pdf
 
Web & Social Media Analytics Previous Year Question Paper.pdf
Web & Social Media Analytics Previous Year Question Paper.pdfWeb & Social Media Analytics Previous Year Question Paper.pdf
Web & Social Media Analytics Previous Year Question Paper.pdf
 
The basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptxThe basics of sentences session 3pptx.pptx
The basics of sentences session 3pptx.pptx
 
The basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptxThe basics of sentences session 2pptx copy.pptx
The basics of sentences session 2pptx copy.pptx
 
Asian American Pacific Islander Month DDSD 2024.pptx
Asian American Pacific Islander Month DDSD 2024.pptxAsian American Pacific Islander Month DDSD 2024.pptx
Asian American Pacific Islander Month DDSD 2024.pptx
 
psychiatric nursing HISTORY COLLECTION .docx
psychiatric  nursing HISTORY  COLLECTION  .docxpsychiatric  nursing HISTORY  COLLECTION  .docx
psychiatric nursing HISTORY COLLECTION .docx
 
Introduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The BasicsIntroduction to Nonprofit Accounting: The Basics
Introduction to Nonprofit Accounting: The Basics
 
On National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan FellowsOn National Teacher Day, meet the 2024-25 Kenan Fellows
On National Teacher Day, meet the 2024-25 Kenan Fellows
 
Application orientated numerical on hev.ppt
Application orientated numerical on hev.pptApplication orientated numerical on hev.ppt
Application orientated numerical on hev.ppt
 
1029 - Danh muc Sach Giao Khoa 10 . pdf
1029 -  Danh muc Sach Giao Khoa 10 . pdf1029 -  Danh muc Sach Giao Khoa 10 . pdf
1029 - Danh muc Sach Giao Khoa 10 . pdf
 
1029-Danh muc Sach Giao Khoa khoi 6.pdf
1029-Danh muc Sach Giao Khoa khoi  6.pdf1029-Danh muc Sach Giao Khoa khoi  6.pdf
1029-Danh muc Sach Giao Khoa khoi 6.pdf
 
Sociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning ExhibitSociology 101 Demonstration of Learning Exhibit
Sociology 101 Demonstration of Learning Exhibit
 

Chi Squared Test

  • 1.
  • 2. Purpose of the Chi Squared Test The purpose of the chi squared test is to see whether observed experimental data is a ‘good fit’ with theoretical expected results. The χ 2 statistic is calculated in the following way:
  • 3. Source: http://en.wikipedia.org/wiki/File:Chi-square_distributionPDF.png
  • 4. Notes on the Chi Squared Distribution 1.) ν (the number of degrees of freedom) is calculated from the number of classes – the number of restrictions. 2.) A restriction is defined as any value that is derived from the observed data set. 3.) The chi squared distribution is continuous and thus offers poor approximation when dealing with small frequencies. When calculating χ 2 we have to combine any classes which contain expected frequencies of less than 5 elements. 4.) As with most statistical distributions, we do not need to concern ourselves with calculating by hand as all critical values are tabulated for easy reference.
  • 5. Lesson 1 - Example Question I The table below shows the results when a die is rolled 120 times. Conduct a chi squared test to see whether the die is fair or not at the 5% significance level. 24 20 18 14 29 15 Freq 6 5 4 3 2 1 Score
  • 6. Lesson 1 - Example Question II The table below shows the results of an experiment in which four coins thrown 160 times and the number of heads recorded. a.) Fit a Bin (4, ½) distribution to the data. b.) Test the goodness of fit of the Bin (4, ½) model using a chi squared test at the 5% significance level. 10 35 54 46 15 Freq 4 3 2 1 0 Score
  • 7. Practice Questions Statistics 3 and 4 by Jane Miller Page 121, Exercise 5A Questions 1 and 3
  • 8.
  • 9.
  • 10. Lesson 3 - Example Question The table below shows the number of calls arriving at a switchboard in time intervals of 5 minutes. Test at the 5% significance level whether the Poisson distribution provides a good model for this data. 0 2 4 23 71 Freq 4 or more 3 2 1 0 No
  • 11. Practice Questions Statistics 3 and 4 by Jane Miller Page 121, Exercise 5A Questions 11 (part a only) (Poisson) 2 (Ratio) 12 (Geometric) 13 (Poisson)
  • 12.
  • 13. Lesson 4 - Example Question The height in centimetres gained by a conifer in its first year after planting is denoted by the random variable H. The value of H is measured for a random sample of 86 conifers and the results obtained are summarised in the table below. Assuming that H is modelled by a N(50, 15 2 ) distribution, test at the 5% level, the goodness of fit of the model. 12 18 28 18 10 Obs Freq >65 55-65 45-55 35-45 <35 H
  • 14. Practice Questions Statistics 3 and 4 by Jane Miller Page 128, Exercise 5B Question 1 onwards
  • 15.
  • 16. Degrees of Freedom The number of degrees of freedom in a h x k contingency table is given by ν = (h – 1) x (k – 1).
  • 17. Lesson 5 - Example Question I Is income level independent of method of transport? 693 129 102 462 Total 266 29 32 205 Large 312 64 49 199 Average 115 36 21 58 Small Income Level Total Self Public Car Method of Transport
  • 18. Lesson 5 - Example Question II A university sociology department believes that students with a good grade in A Level General Studies tend to do well on sociology degree courses. To check this it has collected information on a random sample of 100 who had just graduated and who also had taken general studies at A Level. The students performance in General Studies was divided into two categories, those with grades A or B and ‘others’. Their degrees were recorded as Class I, II, III or fail. The data is given in the table below. Test at the 1% level, the hypothesis that degree performance is independent of A level performance in General Studies. 100 5 30 50 15 Total 60 4 24 28 4 Others 40 1 6 22 11 Grade A or B Total Fail Class III Class II Class I
  • 19. Yates Correction χ 2 is a continuous distribution whilst χ 2 calc is not. In the case of a 2 x 2 contingency table for which ν = 1, the agreement between the two distributions can be improved by applying a continuity correction called Yates Correction. This involves reducing each value of |O – E| by 0.5
  • 20. Lesson 5 - Example Question III A random sample of 930 companies quoted on the stock exchange revealed the information summarised in the table below, which shows the distribution of these companies classified according to two attributes. In this table, D indicates that the company has diversified its product range during the previous financial year, and P indicates that there has been a significant rise in profits during the previous financial year. The null hypothesis is that D and P are independent. Show that this can rejected at all reasonable significance levels. 377 299 Not P 106 148 P Not D D
  • 21.