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Chapter

Fifteen

McGraw-Hill/Irwin © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved.

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Chapter Fifteen
Nonparametric Methods: Chi-Square
Applications
GOALS
When you have completed this chapter, you
will be able to:
ONE
List the characteristics of the Chi-square distribution.
TWO
Conduct a test of hypothesis comparing an observed set of
frequencies to an expected set of frequencies.
THREE
Conduct a hypothesis test to determine whether two
classification criteria are related.

Goals
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Chi-Square Applications

The major characteristics of the chi-square

distribution are:

It is positively skewed
It is non-negative
There is a family of chi-square distributions

Characteristics of the Chi-Square

Distribution
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df = 3

df = 5
df = 10


2 distribution
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Let f0 and fe be the observed and expected
frequencies respectively.
H1: There is a difference H0: There is no difference
between the observed and between the observed and
the expected frequencies. expected frequencies.

The test statistic is:


  
2  fo  fe  
2


 fe 
The critical value is a chi-square value with (k-1)
degrees of freedom, where k is the number of categories

Goodness-of-Fit Test: Equal

Expected Frequencies
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The following
information shows the Day of Week Number Absent
number of employees Monday 120
absent by day of the Tuesday 45
week at a large a Wednesday 60
manufacturing plant. Thursday 90
At the .01 level of
Friday 130
significance, is there a
difference in the Total 445
absence rate by day of
the week?
Example 1 continued
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Step 1:
1 State the null and alternate hypotheses
H0: There is no difference between the
observed and expected frequencies.
H1: There is a difference between the
observed and the expected frequencies

Step 2:
2 Select the level of significance.
This is given in the problem as .01.

Step 3:
3 Select the test statistic.
It is the chi-square distribution.

Example 1 continued
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Step 4:
4 Formulate the decision rule.

Assume equal expected frequency as given in the

problem
fe = (120+45+60+90+130)/5=89

The degrees of freedom: (5-1)=4

The critical value of 2 is 13.28. Reject the null and

accept the alternate if
Computed 2 > 13.28
or p< .01
EXAMPLE 1 continued
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Step Five: Compute the value of chi-square and make a

decision.
Day Frequency Expected (fo – fe)2/fe
Monday 120 89 10.80
Tuesday 45 89 21.75
Wednesday 60 89 9.45
Thursday 90 89 0.01
Friday 130 89 18.89
Total 445 445 60.90

The p(2 > 60.9) = .000000000001877 or essentially 0.

Example 1 continued
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Because the computed value of chi-square, 60.90, is greater

than the critical value, 13.28, the p of .000000000001877 < .
01, H0 is rejected.

We conclude
that there is a
difference in
the number of
workers absent
by day of the
week.

Example 1 continued
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Goodness-of-fit Test: Unequal Expected
Frequencies
The U.S. Bureau of the
Census indicated that 63.9%
of the population is married,
7.7% widowed, 6.9%
divorced (and not re-married),
and 21.5% single (never been
married). A sample of 500
adults from the Philadelphia
area showed that 310 were
married, 40 widowed, 30
divorced, and 120 single. At
the .02 significance level can
we conclude that the
Philadelphia area is different
from the U.S. as a whole?
Example 2
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Step 4: H0 is rejected if 2 >9.837, df=3, or if

p of .02

Step 3: The test statistic is the chi-square.

Step 2: The significance level given is .02.

Step 1: H0: The distribution has not changed

H1: The distribution has changed.

Example 2 continued
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Married: (.639)500 = 319.5

Calculate the
Widowed: (.077)500 = 38.5
expected
Divorced: (.069)500 = 34.5
frequencies
Single: (.215)500 = 107.5

Status f0 fe ( f 0  f e )2 / f e
Married 310 319.5 .2825
Calculate
Widowed 40 38.5 .0584 chi-square
Divorced 30 34.5 .5870 values.
Single 120 107.5 1.4535
Total 500 2.3814
Example 2 continued
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Step 5: 2 = 2.3814, p(2 > 2.3814) = .497.

The null hypothesis is not rejected. The

distribution regarding marital status in
Philadelphia is not different from the rest of the
United States.

Example 2 continued
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Contingency Table Analysis

Chi-square can be
A contingency
used to test for a
relationship between table is used to
two nominal scaled investigate whether
variables, where one two traits or
variable is characteristics are
independent of the related.
other.

Contingency Table
Analysis
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Contingency Table Analysis

Each observation is classified according to two
criteria.
We use the usual hypothesis testing procedure.

The degrees of freedom are equal to:

(number of rows-1)(number of columns-1).
The expected frequency is computed as:
Expected Frequency = (row total)(column total)
grand total
Contingency table analysis
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Contingency Table Analysis

Is there a relationship between
the location of an accident and
the gender of the person
involved in the accident? A
sample of 150 accidents
reported to the police were
classified by type and gender.
At the .01 level of significance,
can we conclude that gender
and the location of the accident
are related? Example 3
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Step 1: H0: Gender and location are not related.

H1: Gender and location are related.
Step 2: The level of significance is set at .01.

Step 3: the test statistic is the chi-square

distribution.
Step 4: The degrees of freedom equal (r-1)(c-1) or 2.
The critical 2 at 2 d.f. is 9.21. If computed 2 >9.21,
or if p < .01, reject the null and accept the alternate.

Step 5: A data table and the following contingency

table are constructed.
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Observed frequencies (fo )

Gender Work Home Other Total
Male 60 20 10 90
Female 20 30 10 60
Total 80 50 20 150

The expected frequency for the work-male

intersection is computed as (90)(80)/150=48.
Similarly, you can compute the expected
frequencies for the other cells.
Example 3 continued
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Expected frequencies (fe )

Gender Work Home Other Total
Male (80) (50)(90) (20)(90)
(90)150 150 150 90
= 48 =30 =12
Female (80)(60) (50)(60) (20)(60)
150 150 150 60
=32 =20 =8
Total 80 50 20 150

Example 3 continued
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2: (fo – fe)2/ fe

Gender Work Home Other Total 2
Male (60-48)2 (20-30)2 (10-12)2 6.667
48 30 12
Female (20-32)2 (30-20)2 (12-10)2 10.000
32 20 10
Total 16.667

Example 3 continued
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The p(2 > 16.667) = .00024.

Since the 2 of 16.667 > 9.21, p of .00024 < .01,

reject the null and conclude that there is a
relationship between the location of an accident and
the gender of the person involved.

Example 3 concluded
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5. Sample
112 Family
6. Data collected

  Height Enough Low Sum

Good 16 8 8 32

Enough 10 20 10 40

Bad 4 16 20 40

Sum 30 44 38 112

Are there relationship between education and welfare?