Problem: A U.S. based internet company offers an on-line proficiency course in basic accounting. Completion of this
Region Recorded Expected (Recorded - Expected)^2 / Expected
1 45 45 0.00
2 60 45 5.00
3 30 45 5.00
4 40 45 0.56
5 50 45 0.56
6 55 45 2.22
7 35 45 2.22
Chi-square = 15.56
Count = 7
α= 0.05
(1) Formulate the hypotheses:
Ho: The distribution is as per the expectation
Ha: The distribution is not as per the expectation; that is, it is different
(2) Decide the test statistic and the Critical value:
Chi-square
Degrees of freedom = 6
Crtical Value = 12.5916
(3) State the decision Rule:
Reject Ho if Chi-square > 12.5916
(4) Calculate the value of test statistic:
Chi-square value = 15.5556
(5) Compare with the critical value and make a decision:
Since 15.5556 > 12.5916 we reject Ho and accept Ha
Decision: It appears that the distribution is not as per the expectation; that is, it is different. There is different demand in th
(6) Calculate the p- value for the test and interpret it:
p- value = 0.0163 This is the probability of rejecting a true null hypothesis.
sic accounting. Completion of this online course satisfies the "Fundamentals of Accounting" course requirement in many MBA programs
reject Ho and accept Ha
ent. There is different demand in the different regions.
ement in many MBA programs. In the first semester 315 students have enrolled in the course. The marketing research manager divided
ing research manager divided the country into seven regions of approximately equal populations. The course enrollment values in each
urse enrollment values in each of the seven regions are given below. The management wants to know if there is equal interest in the co
ere is equal interest in the course across all regions.
Problem: A U.S. based internet company offers an on-line proficiency course in basic accounting. Completion of this
Region Recorded Expected (Recorded - Expected)^2 / Expected
1 45 45 0.00
2 60 45 5.00
3 30 45 5.00
4 40 45 0.56
5 50 45 0.56
6 55 45 2.22
7 35 45 2.22
Chi-square = 15.56
Count = 7
α= 0.01
(1) Formulate the hypotheses:
Ho: The distribution is as per the expectation
Ha: The distribution is not as per the expectation; that is, it is different
(2) Decide the test statistic and the Critical value:
Chi-square
Degrees of freedom = 6
Crtical Value = 16.8119
(3) State the decision Rule:
Reject Ho if Chi-square > 16.8119
(4) Calculate the value of test statistic:
Chi-square value = 15.5556
(5) Compare with the critical value and make a decision:
Since 15.5556 < 16.8119 we fail to reject Ho
Decision: There is no sufficient evidence that the distribution is not as per the expectation; There is no evidence that the de
(6) Calculate the p- value for the test and interpret it:
p- value = 0.0163 This is the probability of rejecting a true null hypothesis.
sic accounting. Completion of this online course satisfies the "Fundamentals of Accounting" course requirement in many MBA programs
fail to reject Ho
on; There is no evidence that the demand is different in the different regions.
ement in many MBA programs. In the first semester 315 students have enrolled in the course. The marketing research manager divided
ing research manager divided the country into seven regions of approximately equal populations. The course enrollment values in each
urse enrollment values in each of the seven regions are given below. The management wants to know if there is equal interest in the co
ere is equal interest in the course across all regions.