BusinessStatistics,9e(Groebner/Shannon/Fry)

Chapter13 GoodnessofFitTestsandContingencyAnalysis
1) A goodnessoffit test can be used to determine whether a set of sample data comes from a specific hypothesized
populationdistribution. Answer: TRUE

2)Iftheteststatisticforachisquaregoodnessoffittestislargerthanthecriticalvalue,thenullhypothesisshouldberejected.
Answer: TRUE

3)Thelogicbehindthechisquaregoodnessoffittestisbasedondetermininghowfartheactualobservedfrequenciesare
fromtheexpectedfrequencies. Answer: TRUE

4)Thegoodnessoffittestisalwaysaonetailtestwiththerejectionregionintheuppertail. Answer: TRUE

5) When the expected cell frequencies are smaller than 5, the cells should be combined in a meaningful way such that the
expectedcellfrequenciesdoexceed5. Answer: TRUE

6) The reason that a decision maker might want to combine groups before performing a goodnessoffit test is to avoid
acceptingthenullhypothesisduetoaninflatedvalueoftheteststatistic. Answer: FALSE

7)Inagoodnessoffittest,whenthenullhypothesisistrue,theexpectedvalueforthechisquareteststatisticiszero.
Answer: TRUE

8) The Conrad Real Estate Company recently conducted a statistical test to determine whether the number of days that
homesareonthemarketpriortosellingisnormallydistributedwithameanequalto50daysandastandarddeviationequal
to10days.Thesampleof200homeswasdividedinto8groupstoformagroupeddatafrequencydistribution.Thedegrees
offreedomforthetestwillbe7. Answer: TRUE

9) The Conrad Real Estate Company recently conducted a statistical test to determine whether the number of days that
homesareonthemarketpriortosellingisnormallydistributedwithameanequalto50daysandastandarddeviationequal
to10days.Thesampleof200homeswasdividedinto8groupstoformagroupeddatafrequencydistribution.Ifachisquare
goodnessoffittestistobeconductedusinganalpha=.05,thecriticalvalueis14.0671. Answer: TRUE

10)Abusinesswith5copymachineskeepstrackofhowmanycopymachinesneedserviceonagivenday.Itbelievesthisis
binomially distributedwith a probability ofp = 0.2of eachmachineneedingservice on any given day.It hascollected the
followingbasedonarandomsampleof100days.
X
0
1
2
3
4or5
Frequency
28
38
22
7
5
Giventhisinformation,assumingthatallexpectedvaluesaresufficientlylargetousetheclassesasshownabove,thecritical
valuefortestingthehypothesiswillbebasedon5degreesoffreedom. Answer: FALSE
11)Giventhisinformationtheexpectednumberofdaysonwhichexactly1machinebreaksdownis40.96. Answer: TRUE
12) Given this information, assuming that all expected values are sufficiently large to use the classes as shown above, the
criticalvaluebasedona0.05levelofsignificanceis9.4877. Answer: TRUE

13) It is believed that the number of drivers who are ticketed for speeding on a particular stretch of highway is a Poisson
distributionwithameanof3.5perhour.Arandomsampleof100hoursisselectedwiththefollowingresults:
6
7
8
9
X
0
1
2
3
4
5
Frequency
5
10
20
18
20
15
4
6
1
2
Giventhisinformation,andwithoutregardtowhetherthereisaneedtocombinecellsduetoexpectedcellfrequencies,the
criticalvaluefortestingwhetherthedistributionisPoissonwithameanof3.5perhouratanalphalevelof.05isx2=15.5073.
Answer: FALSE
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14)Giventhisinformation,itcanbeseenthatthecellswillneedtobecombinedsincetheactualnumberofoccurrencesat
somelevelsofxislessthan5. Answer: FALSE

15)Ifthesamplesizeislarge,thestandardnormaldistributioncanbeusedinplaceofthechisquareinagoodnessoffittest
fortestingwhetherthepopulationisnormallydistributed. Answer: FALSE

16)Bycombiningcellsweguardagainsthavinganinflatedteststatisticthatcouldhaveledustoincorrectlyacceptthenull
hypothesis. Answer: FALSE

17)Ifanyoftheobservedfrequenciesaresmallerthan5,thencategoriesshouldbecombineduntilallobservedfrequencies
areatleast5. Answer: FALSE

18)Alubeandoilchangebusinessbelievesthatthenumberofcarsthatarriveforserviceisthesameeachdayoftheweek.If
thebusinessisopensixdaysaweek(MondaySaturday)andarandomsampleofn=200customersisselected,theexpected
numberthatwillarriveonMondayisabout33.33. Answer: TRUE

19)Thesumoftheexpectedfrequenciesoverthesixdayscannotbedeterminedwithoutseeingtheactualsampledata.
Answer: FALSE
20)Thecriticalvaluefortestingthehypothesisusingagoodnessoffittestisx2=9.2363ifthealphalevelforthetestisset
at.10. Answer: TRUE

21)Agoodnessoffittestcandecidewhetherasetofdatacomesfromaspecifichypothesizeddistribution.
Answer: TRUE
22) If the calculated chisquare statistic is large, this is evidence to suggest the fit of the actual data to the hypothesized
distributionisnotgood,andH0shouldberejected. Answer: TRUE

23)Thegoodnessoffittestisessentiallydeterminingiftheteststatisticissignificantlylargerthanzero.Answer: FALSE

24)BycombiningcellsweguardagainsthavinganinflatedteststatisticthatcouldhaveledustoincorrectlyrejecttheH0.
Answer: TRUE

25)Ifoneormoreparametersareleftunspecifiedinagoodnessoffittest,theymustbeestimatedfromthesampledataand
onedegreeoffreedomislostforeachparameterthatmustbeestimated. Answer: TRUE

26)ThesamplingdistributionforagoodnessoffittestisthePoissondistribution. Answer: FALSE

27)Contingencyanalysishelpstomakedecisionswhenmultipleproportionsareinvolved. Answer: TRUE

28)Contingencyanalysisisusedonlyfornumericaldata. Answer: FALSE

29)Managersusecontingencyanalysistodeterminewhethertwocategoricalvariablesareindependentofeachother.
Answer: TRUE

30) A survey was recently conducted in which males and females were asked whether they owned a laptop personal
computer.Thefollowingdatawereobserved:

Males
Females
HaveLaptop 120
70
NoLaptop
50
60
Giventhisinformation,thesamplesizeinthesurveywas300people. Answer: TRUE
31)Giventhisinformation,ifhavingalaptopisindependentofgender,theexpectednumberofmaleswithlaptopsinthis
surveyis150. Answer: FALSE
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32)Given this information, if an alpha level of .05 is used, the critical value for testing whether the two variables are
independentisx2=3.8415. Answer: TRUE
33)Giventhisinformation,ifanalphalevelof.05isused,thesumoftheexpectedcellfrequencieswillbeequaltothesumof
theobservedcellfrequencies. Answer: TRUE
34)Given this information, if an alpha level of .05 is used, the test statistic for determining whether having a laptop is
independentofgenderisapproximately14.23. Answer: FALSE

35) When the variables of interest are both categorical and the decision maker is interested in determining whether a
relationshipexistsbetweenthetwo,astatisticaltechniqueknownascontingencyanalysisisuseful. Answer: TRUE

36)In conductingatest of independence foracontingencytablethathas 4 rowsand 3columns,thenumberof degreesof

freedomis11. Answer: FALSE

37)Astudywasrecentlyconductedinwhichpeoplewereaskedtoindicatewhichnewmediumwastheirpreferredchoice
fornationalnews.Thefollowingdatawereobserved:

radio
television newspaper
under21
30
50
5
2140
20
25
30
41andover
30
30
50
Giventhisdata,ifwewishtotestwhetherthepreferrednewssourceisindependentofage,theexpectedfrequencyinthecell,
radiounder21cellis30. Answer: FALSE

38)Acellphonecompanywantstodetermineiftheuseoftextmessagingisindependentofage.Thefollowdatahasbeen
collectedfromarandomsampleoftheircustomers.
Regularly use text Do not regularly

messaging
usetextmessaging
Under21
82
38
2139
57
34
40andover
6
83
Usingthedataabove,inordertotestfortheindependenceofageandtheuseoftextmessaging,theexpectedvalueforthe
under21andregularlyusetextmessagingcellis82. Answer: FALSE

39)Astudywasrecentlyconductedinwhichpeoplewereaskedtoindicatewhichnewsmediumwastheirpreferredchoice
fornationalnews.Thefollowingdatawereobserved:

radio
television newspaper
under21
30
50
5
2140
20
25
30
41andover
30
30
50
Giventhisdata,ifwewishtotestwhetherthepreferrednewssourceisindependentofagewithanalphaequalto.05,the
criticalvaluewillbeachisquarevaluewith9degreesoffreedom. Answer: FALSE
40) Given this data, if we wish to test whether the preferred news source is independent of age, the cell with the largest
expectedcellfrequencyisalsothecellwiththelargestobservedfrequency. Answer: FALSE
41)Giventhisdata,ifwewishtotestwhetherthepreferrednewssourceisindependentofage,foranalpha=.05level,the
criticalvaluefromthechisquaretableisbasedon8degreesoffreedom. Answer: FALSE
42)Giventhisdata,ifwewishtotestwhetherthepreferrednewssourceisindependentofage,foranalpha=.05level,the
criticalvaluefromthechisquaretableis9.4877. Answer: TRUE
43)Giventhisdata,ifwewishtotestwhetherthepreferrednewssourceisindependentofage,foranalpha=.05level,the
teststatisticiscomputedtobeapproximately40.70. Answer: TRUE

44)Acellphonecompanywantstodetermineiftheuseoftextmessagingisindependentofage.Thefollowingdatahasbeen
collectedfromarandomsampleofcustomers.
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Regularlyusetextmessaging
Donotregularlyusetextmessaging
Under21
82
38
2139
57
34
40andover
6
8
Usingthisdata,ifwewishtotestwhetherthepreferrednewssourceisindependentofageusinga0.05levelofsignificance,
thecriticalvalueis5.9915. Answer: TRUE
45)Inordertoapplythechisquarecontingencymethodologyforquantitativevariables,wemustfirstbreakthequantitative
variabledownintodiscretecategories. Answer: TRUE

46)AstudywasrecentlydoneintheUnitedStatesinwhichcarownerswereaskedtoindicatewhethertheirmostrecentcar
purchasewasaU.S.car,aGermancar,oraJapanesecar.Thepeopleinthesurveyweredividedbygeographicregioninthe
UnitedStates.Thefollowingdatawererecorded.

US
Japanese German
EastCoast
200
200
50
Central
250
100
20
WestCoast
80
300
40
Giventhissituation,thesamplesizeusedinthisstudywasnine. Answer: FALSE
47)Giventhissituation,thenullhypothesistobetestedisthatthecaroriginisdependentonthegeographicallocationofthe
buyer. Answer: FALSE
48)Giventhissituation,totestwhetherthecaroriginisindependentofthegeographicallocationofthebuyer,thesumofthe
expectedcellfrequencieswillequal1,240. Answer: TRUE
49)Giventhissituation,totest whetherthecarorigin is independentof the geographicallocation of the buyer,thecritical
valueforalpha=.10is14.6837. Answer: FALSE
50)Giventhissituation,totestwhetherthecaroriginisindependentofthegeographicallocationofthebuyer,theexpected
numberofpeopleinthesamplewhoboughtaGermanmadecarandwholivedontheEastCoastisjustunder40people.
Answer: TRUE

51)Acellphonecompanywantstodetermineiftheuseoftextmessagingisindependentofage.Thefollowingdatahasbeen
collectedfromarandomsampleofcustomers.

Regularlyusetextmessaging
Donotregularlyusetextmessaging
Under21
82
38
2139
57
34
40andover
6
83
Toconductatestofindependence,thedifferenceexpectedvalueforthe40andoverandregularlyusetextmessagingcellis
justover43people. Answer: TRUE

52)Contingencyanalysiscanbeusedwhenthelevelofdatameasurementisnominalorordinal. Answer: TRUE

53)Toemploycontingencyanalysis,wesetupa2dimensionaltablecalledacontingencytable. Answer: TRUE

54)Acontingencytableandacrosstabulationtablearetwoseparatethingsandshouldnotbeusedforthesamepurpose.
Answer: FALSE

55) In a contingency analysis, we expect the actual frequencies in each cell to approximately match the corresponding
expectedcellfrequencieswhenH0istrue. Answer: TRUE

56)Inachisquarecontingencytest,thenumberofdegreesoffreedomisequaltothenumberofcellsminus1.
Answer: FALSE

57) In a chisquare contingency analysis application, the expected cell frequencies will be equal in all cells if the null
hypothesisistrue. Answer: FALSE
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58) Unlike the case ofgoodnessoffit testing, with contingency analysis there is no restriction on the minimum size for an
expectedcellfrequency. Answer: FALSE

59)Inacontingencyanalysistheexpectedvaluesarebasedontheassumptionthatthetwovariablesareindependentofeach
other. Answer: TRUE

60)Ifacontingencyanalysistestisperformedwitha46design,andifalpha=.05,thecriticalvaluefromthechisquare
distributionis24.9958 Answer: TRUE

61)Ifacontingencyanalysistestperformedwitha46designresultsinateststatisticvalueof18.72,andifalpha=.05,the
nullhypothesisthattherowandcolumnvariableareindependentshouldberejected. Answer: FALSE

62)Ifthenullhypothesisisnotrejected,youdonotneedtoworrywhentheexpectedcellfrequenciesdropbelow5.0
Answer: TRUE

63)Thedegreesoffreedomforthechisquaregoodnessoffittestareequalto________,wherekisthenumberofcategories.
A)k+1 B)k1 C)k+2 D)k2

64)Whichofthefollowingstatementsistrueinthecontextofachisquaregoodnessoffittest?
A)Thedegreesoffreedomfordeterminingthecriticalvaluewillbethenumberofcategoriesminus1.
B)Thecriticalvaluewillcomefromthestandardnormaltableifthesamplesizeexceeds30.
C)Thenullhypothesiswillberejectedforasmallvalueoftheteststatistic.
D)Averylargeteststatisticwillresultinthenullnotbeingrejected.

65)Awalkinmedicalclinicbelievesthatarrivalsareuniformlydistributedoverweekdays(MondaythroughFriday).Ithas
collectedthefollowingdatabasedonarandomsampleof100days.

Frequency
Mon
25
Tue
22
Wed
19
Thu
18
Fri
16
Total
100
Basedonthisinformationhowmanydegreesforfreedomareinvolvedinthisgoodnessoffittest?
A)99 B)100 C)4 D)5
66)Assumingthatagoodnessoffittestistobeconductedusinga0.10levelofsignificance,thecriticalvalueis:
A)9.4877 B)11.0705 C)7.7794 D)9.2363

67)Toconductagoodnessoffittest,whatistheexpectedvalueforFriday?
A)20 B)25 C)16 D)100
68)Whatisthevalueoftheteststatisticneededtoconductagoodnessoffittest?
A)8.75 B)7.7794 C)2.46 D)2.50
69)Basedonthesedata,conductagoodnessoffittestusinga0.10levelofsignificance.Whichconclusioniscorrect?
A)Arrivalsarenotuniformlydistributedovertheweekdaybecause(teststatistic)>(criticalvalue).
B)Arrivalsareuniformlydistributedovertheweekdaybecause(teststatistic)>(criticalvalue).
C)Arrivalsarenotuniformlydistributedovertheweekdaybecause(teststatistic)<(criticalvalue).
D)Arrivesareuniformlydistributedovertheweekdaybecause(teststatistic)<(criticalvalue).

70)Inachisquaregoodnessoffittest,bycombiningcellsweguardagainsthavinganinflatedteststatisticthatcouldhave
causedusto:
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A)incorrectlyrejecttheH0. B)incorrectlyaccepttheH0. C)incorrectlyrejecttheH1. D)incorrectlyaccepttheH1.

71)Inagoodnessoffittestaboutapopulationdistribution,ifoneormoreparametersareleftunspecifiedinH0,theymust
beestimatedfromthesampledata.Thiswillreducethedegreesoffreedomby________foreachestimatedparameter.
A)1 B)2 C)3 D)Noneoftheabove

72) If a sample with n = 60 subjects distributed over 3 categories was selected, a chisquare test for goodnessoffit will be
used.Howmanydegreesoffreedomwillbeusedindeterminingthechisquareteststatistic?
A)1 B)2 C)16 D)64

73)Consideragoodnessoffittestwithacomputedvalueofchisquare=1.273andacriticalvalue=13.388,theappropriate
conclusionwouldbeto:
A)rejectH0. B)failtorejectH0. C)takealargersample. D)takeasmallersample.

74)Aresearcherisusingachisquaretesttodeterminewhetherthereareanypreferencesamong4brandsoforangejuice.
Withalpha=0.05andn=30,thecriticalregionforthehypothesistestwouldhaveaboundaryof:
A)7.81 B)8.71 C)8.17 D)42.25

75)Achisquaretestforgoodnessoffitisusedtotestwhetherornotthereareanypreferencesamong3brandsofpeas.Ifthe
studyusesasampleofn=60subjects,thentheexpectedfrequencyforeachcategorywouldbe:
A)20 B)30 C)60 D)33

76)Weareinterestedindeterminingwhethertheopinionsoftheindividualsonguncontrol(astoYes,No,andNoOpinion)
areuniformlydistributed.
Asampleof150wastakenandthefollowingdatawereobtained.
Doyousupportguncontrol
NumberofResponses
Yes
40
No
60
NoOpinion
50
Theconclusionofthetestwithalpha=0.05isthattheviewsofpeopleonguncontrolare:
A)uniformlydistributed. B)notuniformlydistributed. C)inconclusive. D)Noneoftheabove

77)Tousecontingencyanalysisfornumericaldata,whichofthefollowingistrue?
A)Contingencyanalysiscannotbeusedfornumericaldata.
B)Numericaldatamustbebrokenupintospecificcategories.
C)Contingencyanalysiscanbeusedfornumericaldataonlyifbothvariablesarenumerical.
D)Contingencyanalysiscanbeusedfornumericaldataonlyifitisintervaldata.

78)Whatdoesthetermobservedcellfrequenciesreferto?
A)Thefrequenciesfoundinthepopulationbeingexamined B)Thefrequenciesfoundinthesamplebeingexamined
C)ThefrequenciescomputedfromH0 D)ThefrequenciescomputedfromH1

79)Whatdoesthetermexpectedcellfrequenciesreferto?
A)Thefrequenciesfoundinthepopulationbeingexamined B)Thefrequenciesfoundinthesamplebeingexamined
C)ThefrequenciescomputedfromH0 D)thefrequenciescomputedfromH1

80)Weexpecttheactualfrequenciesineachcelltoapproximatelymatchthecorrespondingexpectedcellfrequencieswhen:
A)H0isfalse. B)H0istrue. C)H0isfalselyaccepted. D)thevariablesarerelatedtoeachother.

81)Inacontingencyanalysis,thegreaterthedifferencebetweentheactualandtheexpectedfrequencies,themorelikely:
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A)H0shouldberejected. B)H0shouldbeaccepted.
C)wecannotdetermineH0. D)thesmallertheteststatisticwillbe.

82)Inachisquarecontingencyanalysis,whenexpectedcellfrequenciesdropbelow5,thecalculatedchisquarevaluetends
tobeinflatedandmayinflatethetrueprobabilityof________beyondthestatedsignificancelevel.
A)committingaTypeIerror B)committingaTypeIIerror C)BothAandB D)Alloftheabove

83)Inperformingchisquarecontingencyanalysis,toovercomeasmallexpectedcellfrequencyproblem,we:
A)combinethecategoriesoftherowand/orcolumnvariables. B)increasethesamplesize.
C)BothAandB D)Noneoftheabove

84)Howcanthedegreesoffreedombefoundinacontingencytablewithcrossclassifieddata?
A)Whendfareequaltorowsminuscolumns B)Whendfareequaltorowsmultipliedbycolumns
C)Whendfareequaltorowsminus1multipliedbycolumnsminus1 D)Totalnumberofcellminus1

85)Acellphonecompanywantstodetermineiftheuseoftextmessagingisindependentofage.Thefollowingdatahasbeen
collectedfromarandomsampleofcustomers.

Regularlyusetextmessaging
Donotregularlyusetextmessaging
Under21
82
38
2139
57
34
40andover
6
83
Basedonthedataabovewhatistheexpectedvaluefortheunder21andregularlyusetextmessagingcell?
A)82 B)50 C)120 D)58
86)Toconductacontingencyanalysis,thenumberofdegreesoffreedomis:
A)6 B)5 C)3 D)2
87)Toconductacontingencyanalysisusinga0.01levelofsignificance,thevalueofthecriticalvalueis:
A)15.0863 B)5.9915 C)9.2104 D)11.0705
88)Toconductacontingencyanalysis,thevalueoftheteststatisticis:
A)9.2104 B)88.3 C)275.02 D)14.6

89)Forachisquaretestinvolvingacontingencytable,supposeH0isrejected.Weconcludethatthetwovariablesare:
A)curvilinear. B)linear. C)related. D)notrelated.

90)Whentestingforindependenceinacontingencytablewith3rowsand4columns,thereare________degreesoffreedom.
A)5 B)6 C)7 D)12

91)Intestingahypothesisthattwocategoricalvariablesareindependentusingthex2test,theexpectedcellfrequenciesare
basedonassuming:
A)thenullhypothesis. B)thealternativehypothesis. C)thenormaldistribution. D)thevariablearerelated.

92)Astudypublishedinthe AmericanJournalof PublicHealthwasconducted todetermine whethertheuse ofseatbelts in

motorvehiclesdependsonethnicstatusinSanDiegoCounty.Asampleof792childrentreatedforinjuriessustainedfrom
motorvehicleaccidentswasobtained,andeachchildwasclassifiedaccordingto(1)ethnicstatus(HispanicornonHispanic)
and(2)seatbeltusage(wornornotworn)duringtheaccident.Thenumberofchildrenineachcategoryisgiveninthetable
below.

Hispanic
NonHispanic
Seatbeltsworn
31
148
Seatbeltsnotworn
283
330
Referringtothesedata,whichtestwouldbeusedtoproperlyanalyzethedatainthisexperiment?
A)x2testforindependenceinatwowaycontingencytable B)x2testforequalproportionsinaonewaytable
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C)ANOVAFtestforinteractionina22factorialdesign D)x2goodnessoffittest

93)Referringtothesedata,thecalculatedteststatisticis:
A)approximately0.9991 B)nearly0.1368 C)about48.1849 D)approximately72.8063

94)Referringtothesedata,whichofthefollowingconclusionsshouldbereachediftheappropriatehypothesisisconducted
usinganalpha=.05level?
A)ThemeanvalueforHispanicsisthesameasforNonHispanics.
B)ThereisnorelationshipbetweenwhethersomeoneisHispanicandwhethertheywearaseatbelt.
C)TheuseofseatbeltsandwhetherapersonisHispanicornotisstatisticallyrelated.
D)Noneoftheabove

95) Many companies use wellknown celebrities as spokespeople in their TV advertisements. A study was conducted to
determinewhetherbrandawarenessoffemaleTVviewersandthegenderofthespokespersonareindependent.Eachina
sampleof300femaleTVviewerswasaskedtoidentifyaproductadvertisedbyacelebrityspokesperson.Thegenderofthe
spokesperson and whether or not the viewer could identify the product was recorded. The numbers in each category are
givenbelow.

MaleCelebrity
FemaleCelebrity
Identifiedproduct
41
61
Couldnotidentify
109
89
Referringtothesesampledata,whichtestwouldbeusedtoproperlyanalyzethedatainthisexperiment?
A)x2testforindependenceinatwowaycontingencytable B)x2testforequalproportionsinaonewaytable
C)ANOVAFtestformaintreatmenteffect D)x2goodnessoffittest

96) Referring to these sample data, if the appropriate hypothesis test is to be conducted using a .05 level of significance,
whichofthefollowingiscorrectcriticalvalue?
A)9.4877 B)3.8415 C)1.96 D)7.8147

97)Referringtothesesampledata,whichofthefollowingvaluesisthecorrectvalueoftheteststatistic?
A)Approximately9.48 B)Nearly23.0 C)About3.84 D)Approximately5.94

98)Referringtothesesampledata,iftheappropriatenullhypothesisistestedusingasignificancelevelequalto.05,whichof
thefollowingconclusionsshouldbereached?
A)Thereisarelationshipbetweengenderofthecelebrityandproductidentification.
B)Thereisnorelationshipbetweengenderofthecelebrityandproductidentification.
C)Themeannumberofproductsidentifiedformalesisdifferentthanthemeannumberforfemales.
D)Femaleshavehigherbrandawarenessthanmales.

99)Thedegreesoffreedomforacontingencytablewith11rowsand10columnsis:
A)11 B)10 C)110 D)90

100) We want to test whether type of car owned (domestic or foreign) is independent of gender. A contingence table is
obtainedfromasampleof990peopleas

Atalpha=0.05level,weconcludethat:
A)x2=3.34andtypeofcarownedisindependentofgender. B)x2=3.34andtypeofcarownedisdependentofgender.
C)x2=3.84andtypeofcarownedisindependentofgender. D)x2=3.84andtypeofcarownedisdependentofgender.

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101)Thebillingdepartmentofanationalcableservicecompanyisconductingastudyofhowcustomerspaytheirmonthly
cablebills.Thecablecompanyacceptspaymentinoneoffourways:inpersonatalocaloffice,bymail,bycreditcard,orby
electronicfundstransferfromabankaccount.Thecablecompanyrandomlysampled400customerstodetermineifthereisa
relationshipbetweenthecustomersageandthepaymentmethodused.Thefollowingsampleresultswereobtained:

Basedonthesampledata,canthecablecompanyconcludethatthereisarelationshipbetweentheageofthecustomerand
thepaymentmethodused?Conducttheappropriatetestatthealpha=0.01levelofsignificance.
A)Becausex2=42.2412>21.666,donotrejectthenullhypothesis.Basedonthesampledataconcludethatageandtypeof
paymentareindependent.
B)Becausex2=42.2412>21.666,rejectthenullhypothesis.Basedonthesampledataconcludethatageandtypeofpayment
arenotindependent
C)Becausex2=50.3115>21.666,donotrejectthenullhypothesis.Basedonthesampledataconcludethatageandtypeof
paymentare independent.
D) Because x2 = 50.3115 > 21.666, reject the null hypothesis. Based on the sample data conclude that age and type of
paymentarenotindependent.

104)Explainwhy,inperformingagoodnessoffittest,itissometimesnecessarytocombinecategories.
Answer: Because of the way in which the chisquare test statistic is computed by squaring the difference between the
observed and expected frequencies, when the expected frequencies are small (less than 5), the calculated test statistic can
becomeartificiallylargeandthereforemayleadtoanincreasedchanceofcommittingaTypeIstatisticalerror.Thatis,atrue
nullhypothesismayberejectedatahigherratethanindicatedbytheselectedsignificancelevel.Bycombiningcategories,the
small expected frequencies are grouped to become larger than five and thus the issue of inflated Type I error probability
dissolves.
Note:Analternativetocombiningcategoriesistoincreasethesamplesize.Largesamplesizesresultingreaterexpectedcell
frequenciesinallcategories.

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