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    Chapter 9 Problems

    Uploaded by

    mashulia

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    © All Rights Reserved
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    A carters «Inference for Two-Way Tables APPLY YOUR Corie APPLY YOUF Rory authors of this study supplemented the data we used with interviews of founders of franchises and a theoretical framework for the results. Still, they limit their conclusion to stating that the firms with exclusive territories are more likely to survive. 9.7 Degrees of freedom. A chi-square significance testis performed to examine the association between two categorical variables ina 5 X 3 table. What are the degrees of freedom associated with the test statistic? 9.8 The P-value. A test for association gives X? = 13.62 with df = 6. How ‘would you report the P-value for this problem? Use Table F in the back of the book. The chi-square test and the z test We began this chapter by converting a “compare two proportions” setting (Example 9.1) into a 2X2 table, We now have two ways to test the hypothesis of equality of two population proportions: the chi-square test and the two-sample z test from Section 8.2. In fact, these tests always give exactly the same result, because the chi-square statistic is equal to the square of the z statistic, and 2(1) critical values are equal to the squares of the corresponding N(0, 1) critical values. Exercise 9.9 asks you to verify this for Example 9.1, The advantage of the z test is that we can test either one-sided or two-sided alternatives and add confidence intervals to the significance test. ‘The chi-square test always tests the two-sided alternative. The advantage of the chi-square test is that it is much more general: we can compare more ;opulation proportions or, more generally yet, ask about relations ables of any size. t labels. Sample proportions from Example 9.1 and the two-way Example 9.2 (page 548) report the same information in different Ve saw in Chapter 8 (page 528) thatthe z statistic for the hypothesis Goal population proportions is z = 3.30 with P < 0.001 (a) Find the chi-square statistic X* for this two-way rable and verify that it is equal (up to roundoff error) to 2. (b) Verify thatthe 0.001 critical value for chi-square with df = 1 (Table F) is the square of the 0.0005 critical value for the standard Normal

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