Chapter 17

Nonparametric Methods: Chi-Square Applications

True/False

1. Nonparametric tests require no assumptions about the shape of the population distribution.
Answer: True Difficulty: Easy Goal: 1 AACSB: AS

2. The claim that "male and female students at Coastal Carolina University prefer different parking lots
on campus" is an example of a chi-square null hypothesis.
Answer: False Difficulty: Easy Goal: 3 AACSB: MD

3. Tests of hypotheses for nominal or ordinal levels of measurement are called nonparametric or
distribution-free tests.
Answer: True Difficulty: Easy Goal: 1

4. The chi-square goodness-of-fit test is appropriate for nominal and ordinal levels of data.
Answer: True Difficulty: Easy Goal: 2 AACSB: AS

5. The chi-square test statistic used in a goodness-of-fit test has k1 degrees of freedom.
Answer: True Difficulty: Easy Goal: 2

6. The chi-square goodness-of-fit test can be applied if there are equal or unequal expected frequencies.
Answer: True Difficulty: Easy Goal: 2

7. There is not one, but a family of chi-square distributions. There is a chi-square distribution for 1
degree of freedom, another for 2 degrees of freedom, another for 3 degrees of freedom, and so on.
Answer: True Difficulty: Easy Goal: 1

8. For a goodness-of-fit test, the number of degrees of freedom is k2, where k is the number of
categories.
Answer: False Difficulty: Easy Goal: 2

9. The shape of the chi-square distribution depends on the size of the sample.
Answer: False Difficulty: Medium Goal: 1

Statistical Techniques in Business & Economics, Lind/Marchal/Wathen, 13/e 29

10. The chi-square distribution is positively skewed.
Answer: True Difficulty: Easy Goal: 1

11. In a goodness-of-fit test, the sum of the expected frequencies need not equal the sum of the observed
frequencies.
Answer: False Difficulty: Medium Goal: 2 AACSB: AS

12. In a goodness-of-fit test, the sum of the expected frequencies must equal the sum of the observed
frequencies.
Answer: True Difficulty: Medium Goal: 2

13. In chi-square applications, the sum of the differences between expected and observed frequencies
must equal zero.
Answer: True Difficulty: Medium Goal: 2

14. Nonparametric tests of hypotheses, also called distribution free tests, require the population to be
normally distributed.
Answer: False Difficulty: Medium Goal: 1

15. A goodness-of-fit test is a nonparametric test involving a set of observed frequencies and a
corresponding set of expected frequencies.
Answer: True Difficulty: Medium Goal: 2 AACSB: REF

16. For a goodness-of-fit test, the following are possible null and alternate hypotheses:
Ho: Sales are uniformly distributed among the five locations.
H1: Sales are not uniformly distributed among the five locations.
Answer: True Difficulty: Easy Goal: 2

17. For the goodness-of-fit test, the use of the chi-square statistic would be permissible in the following
problem.

In d iv id u a l O b se rv e d F re q u e n c y E x p e c te d F re q u e n c y
L ite ra te 639 642
Illite ra te 6 3

Answer: False Difficulty: Medium Goal: 2

18. A small number of cells with expected frequencies less than 5, might result in an erroneous
conclusion for the application of the chi-square distribution.
Answer: True Difficulty: Medium Goal: 2

30 Test Bank, Chapter 17

19. If there are more than two cells, chi-square should not be applied if more than 50 percent of the
expected frequency cells have expected frequencies of less than ten.
Answer: False Difficulty: Medium Goal: 2

20. In the goodness-of-fit test, the chi-square distribution is used to determine how well an observed
distribution of observations "fits" an expected distribution of observations.
Answer: True Difficulty: Medium Goal: 2 AACSB: REF

21. For a contingency table, the expected frequency for a cell is found by dividing the row total by the
grand total.
Answer: False Difficulty: Medium Goal: 3

22. The shape of the chi-square distribution changes for each number of degrees of freedom.
Answer: True Difficulty: Medium Goal: 1

23. If the computed value of a chi-square statistic is less than the critical chi-square value, reject the null
hypothesis at a predetermined Type I error rate.
Answer: False Difficulty: Medium Goal: 2

24. When conducting a hypothesis test with chi-square analysis, the rejection region is in the lower or left
tail of a chi-square distribution.
Answer: False Difficulty: Medium Goal: 2

25. When conducting a hypothesis test with chi-square analysis, the rejection region in a chi-square
distribution is always in the upper or right tail.
Answer: True Difficulty: Medium Goal: 2

26. When conducting a hypothesis test with chi-square analysis, the null hypothesis is rejected when the
differences between the expected and observed frequencies are relatively large.
Answer: True Difficulty: Medium Goal: 2

Statistical Techniques in Business & Economics, Lind/Marchal/Wathen, 13/e 31

Multiple Choice

27. A question has these possible choicesexcellent, very good, good, fair and unsatisfactory. How
many degrees of freedom are there using the goodness-of-fit test to the sample results?
A) 0
B) 2
C) 4
D) 5
Answer: C Difficulty: Easy Goal: 2

28. What is the critical value at the 0.05 level of significance for a goodness-of-fit test if there are six
categories?
A) 3.841
B) 5.991
C) 7.815
D) 11.070
Answer: D Difficulty: Medium Goal: 2 AACSB: AS

29. What is our decision regarding the differences between the observed and expected frequencies if the
critical value of chi-square is 9.488 and the computed value is 6.079?
A) The difference is probably due to sampling error; do not reject the null hypothesis
B) Not due to chance; reject the null hypothesis
C) Not due to chance; do not reject the alternate hypothesis
D) Too close; reserve judgment
Answer: A Difficulty: Medium Goal: 2

30. The chi-square distribution can assume

A) only positive values.
B) only negative values.
C) negative and positive values or zero.
D) only zero.
Answer: A Difficulty: Medium Goal: 1 AACSB: AS

31. The chi-square distribution is

A) positively skewed.
B) negatively skewed.
C) normally distributed.
D) negatively or positively skewed.
Answer: A Difficulty: Medium Goal: 1

32 Test Bank, Chapter 17

32. Two chi-square distributions were plotted on the same chart. One distribution was for 3 degrees of
freedom and the other was for 12 degrees of freedom. Which distribution would tend to approach a
normal distribution?
A) 3 degrees
B) 12 degrees
C) 15 degrees
D) All would
Answer: B Difficulty: Medium Goal: 1 AACSB: REF

33. A distributor of personal computers has five locations in the city. The sales in units for the first
quarter of the year were as follows:

L o c a tio n O b s e rv e d S a le s (U n its )
N o rth S id e 70
P le a s a n t T o w n s h ip 75
S o u th w y c k 70
I 9 0 50
V e n ic e A v e n u e 35
300

What is the critical value at the 0.01 level of risk?

A) 7.779
B) 15.033
C) 13.277
D) 5.412
Answer: C Difficulty: Medium Goal: 2

34. What is our decision for a goodness-of-fit test with a computed value of chi-square of 1.273 and a
critical value of 13.388?
A) Do not reject the null hypothesis
B) Reject the null hypothesis
C) Unable to reject or not reject the null hypothesis based on data
D) Should take a larger sample
Answer: A Difficulty: Medium Goal: 2

Statistical Techniques in Business & Economics, Lind/Marchal/Wathen, 13/e 33

35. The following table classifies an individual in two waysby gender and by educational choice.

What is this two-way classification called?

A) Goodness-of-fit test
B) Frequency table
C) ANOVA table
D) Contingency table
Answer: D Difficulty: Easy Goal: 3

36. To analyze data cross-classified in a contingency table, how are the degrees of freedom found?
A) N1
B) Rows Columns
C) (Rows) x (Columns)
D) (Rows 1) x (Columns 1)
Answer: D Difficulty: Medium Goal: 3

37. The following table shows the adjustment to civilian life and place of residence.

What is the critical value for this contingency table at the 0.01 level of significance?
A) 9.488
B) 2.070
C) 11.345
D) 13.277
Answer: C Difficulty: Medium Goal: 3

34 Test Bank, Chapter 17

38. The educational level and the social activity of a sample of executives follow.

S o c ia l A c tiv ity
E d u c a tio n A bove Av erag e A v e ra g e B e lo w A v e ra g e
C o lle g e 30 20 10
H ig h S c h o o l 20 40 90
G ra d e S c h o o l 10 50 130

What does the expected frequency for the "above average" social activity and "high school" education
equal?
A) 9.50
B) 60.00
C) 22.50
D) 28.50
Answer: C Difficulty: Medium Goal: 3

39. Which of the following assumptions is necessary to apply a nonparametric test of hypothesis using
the chi-square distribution?
A) Normal population is required
B) Interval scale of measurement is required
C) Population variance must be known
D) Both "a" and "c"
E) None of the above
Answer: E Difficulty: Medium Goal: 1

40. Which of the following are correct statements regarding the chi-square distribution?
A) Distribution is negatively skewed
B) Chi-square is based on two sets of degrees of freedom, one for the numerator and one for the
denominator
C) Its shape is based on the degrees of freedom
D) All of the above are true
E) None of the above are true
Answer: C Difficulty: Medium Goal: 1

41. Which of the following are correct statements regarding the goodness-of-fit test?
A) Data may be of nominal scale
B) Population must be normal
C) All the expected frequencies must be equal
D) All of the above are true
E) None of the above are true
Answer: A Difficulty: Medium Goal: 2

Statistical Techniques in Business & Economics, Lind/Marchal/Wathen, 13/e 35

42. A sample of 100 production workers is obtained. The workers are classified by gender (male, female)
and by age (under 20, 2029, 3039 and 40 or over). How many degrees of freedom are there?
A) 0
B) 3
C) 6
D) 5
Answer: B Difficulty: Easy Goal: 3 AACSB: AS

43. The chi-square distribution becomes more symmetrical as

A) number of variables increase.
B) the chi-square value increases.
C) degrees of freedom decrease.
D) degrees of freedom increase.
Answer: D Difficulty: Medium Goal: 1 AACSB: AS

44. For any chi-square goodness-of-fit problem, the number of degrees of freedom is found by
A) n k 1.
B) k 1.
C) n + 1.
D) n + k.
Answer: B Difficulty: Medium Goal: 2

45. The chi-square has

A) one distribution.
B) two distributions.
C) a family of distribution.
D) a uniform distribution.
Answer: C Difficulty: Easy Goal: 1

46. Three new colors have been proposed for the Jeep Grand Cherokee vehicle. They are silvered-blue,
almond, and willow green. The null hypothesis for a goodness-of-fit test would be
A) willow green is preferred over the other colors.
B) that there is no preference between the colors.
C) any one color is preferred over the other colors.
D) impossible to determine.
Answer: B Difficulty: Medium Goal: 2

47. For a chi-square test involving a contingency table, suppose the null hypothesis is rejected. We
conclude that the two variables are
A) linear.
B) curvilinear.
C) not related.
D) related.
Answer: D Difficulty: Medium Goal: 3 AACSB: AS

36 Test Bank, Chapter 17

48. Which of the following can be used to test the hypothesis that two nominal variables are related?
A) a contingency table.
B) a chi-square table.
C) an ANOVA table.
D) a scatter diagram.
Answer: A Difficulty: Medium Goal: 3

49. When determining how well an observed set of frequencies fit an expected set of frequencies the test
is a
A) F test.
B) t test.
C) 2 test
D) test for association.
Answer: C Difficulty: Medium Goal: 2

50. In a goodness-of-fit test, the null hypothesis (no difference between sets of observed and expected
frequencies) is rejected when the
A) computed chi-square is less than the critical value.
B) difference between the observed and expected frequencies is significantly large.
C) difference between the observed and expected frequencies is small.
D) difference between the observed and expected frequencies occurs by chance.
Answer: B Difficulty: Medium Goal: 2

51. The computed chi-square value is positive because the difference between the observed and expected
frequencies is
A) squared.
B) linear.
C) uniform.
D) always positive.
Answer: A Difficulty: Medium Goal: 2 AACSB: AS

Fill-in-the-Blank

52. The computed value of chi-square statistic is always positive because the difference between the
observed frequencies and the expected frequencies is _______________.
Answer: squared Difficulty: Medium Goal: 1 AACSB: AS

53. What should the expected frequencies be for a goodness-of-fit test if there are only two cells?
___________
Answer: five or more Difficulty: Medium Goal: 2

Statistical Techniques in Business & Economics, Lind/Marchal/Wathen, 13/e 37

54. What statistical test is used to determine how well an observed set of data fits an expected set of data?
________________________________
Answer: Chi-square goodness-of-fit test Difficulty: Medium Goal: 2

55. When sampling from a population, small differences between observed and expected frequencies
may be due to ______________.
Answer: chance or sampling error Difficulty: Medium Goal: 1

56. What does the chi-square distribution approach with large degrees of freedom?
_________________________
Answer: normality or a normal distribution Difficulty: Medium Goal: 1

57. As the degrees of freedom increase, the shape of a chi-square distribution approaches
_________________________
Answer: normality or a normal distribution Difficulty: Medium Goal: 1

58. What is the null hypothesis in the goodness-of-fit test? ____________

Answer: The distributions of observed and expected frequencies are the same. Difficulty: Medium
Goal: 2

59. What is the lowest level of data for which the chi-square goodness-of-fit test is appropriate?
______________
Answer: nominal Difficulty: Medium Goal: 1

60. What hypothesis states that there is a difference between the observed frequency distribution and the
expected frequency distribution? ______________
Answer: alternative hypothesis Difficulty: Medium Goal: 2

61. What is the number of degrees of freedom for a chi-square goodness-of-fit test?
____________________________
Answer: number of categories minus 1 Difficulty: Medium Goal: 2

62. When testing a goodness-of-fit null hypothesis, and there are extremely large differences between
observed and expected frequencies, what decision should be made? ____________
Answer: reject H0 Difficulty: Medium Goal: 2

63. What is the minimum computed value of chi-square? _______

Answer: zero Difficulty: Medium Goal: 1

38 Test Bank, Chapter 17

64. What is the shape of the chi-square distribution?__________________
Answer: positively skewed Difficulty: Medium Goal: 1

65. What are the degrees of freedom for a contingency table classifying three levels of income with each
gender? ______
Answer: 2 Difficulty: Medium Goal: 2

66. In a contingency table, multiplying the row total and the column total and dividing by the
___________ computes the expected frequency for a cell.
Answer: grand total Difficulty: Medium Goal: 2

67. For contingency table analysis using a chi-square test, multiplying the number of rows minus 1 by the
number of columns minus 1 will give you what? ___________________________________
Answer: chi-square statistic degrees of freedom Difficulty: Medium Goal: 3

Multiple Choice

Use the following to answer questions 68-74:

A personnel manager is concerned about absenteeism. She decides to sample the records to determine if
absenteeism is distributed evenly throughout the six-day workweek. The null hypothesis to be tested is:
Absenteeism is distributed evenly throughout the week. The 0.01 level is to be used. The sample results
are:

D ay of W eek N um ber A bsent

M onday 12
T uesday 9
W ednesday 11
T h u rsd a y 10
F rid a y 9
S a tu rd a y 9

68. What kind of frequencies are the numbers 12, 9, 11, 10, and 9 called?
A) Acceptance
B) Critical value
C) Expected
D) Observed
Answer: D Difficulty: Easy Goal: 2

Statistical Techniques in Business & Economics, Lind/Marchal/Wathen, 13/e 39

69. How many degrees of freedom are there?
A) 0
B) 3
C) 4
D) 5
Answer: D Difficulty: Medium Goal: 2

70. What is the expected frequency?

A) 9
B) 10
C) 11
D) 12
Answer: B Difficulty: Medium Goal: 2

71. What is the calculated value of chi-square?

A) 1.0
B) 0.5
C) 0.8
D) 8.0
Answer: C Difficulty: Medium Goal: 2

72. What is the critical value of chi-square with = 0.05?

A) 11.070
B) 12.592
C) 13.388
D) 15.033
Answer: A Difficulty: Medium Goal: 2

Fill-in-the-Blank

73. If the computed value of a chi-square statistic is less than the critical value, what is our decision?
____________________________
Answer: Do not reject H0; absenteeism is distributed evenly over the six working days
Difficulty: Medium Goal: 2

74. If the computed value of a chi-square statistic is greater than the critical value, what is our decision?
_____________________________
Answer: Reject H0; absenteeism is not distributed evenly over the six working days
Difficulty: Medium Goal: 2

40 Test Bank, Chapter 17

Use the following to answer questions 75-82:
Six people have declared their intentions to run for a trustee seat in the next local election. A political poll
is conducted during the campaign among 1,020 randomly sampled voters to determine if there is any clear
preference among the voters. The responses are shown below.

C a n d id a te : A B C D E F
R esponses 180 240 200 130 125 145

75. What is the null hypothesis? ___________________________________

Answer: No preference among candidates exists, or the frequency of voter preference is evenly
distributed among the six candidates. Difficulty: Medium Goal: 2

76. What is the alternative hypothesis? ______________________________

Answer: Preference among candidates exists or the frequency of voter preference is not evenly
distributed among the six candidates. Difficulty: Medium Goal: 2

77. How many degrees of freedom are there? ______

Answer: 5 Difficulty: Medium Goal: 2

78. What is the critical value at the 5% level of significance? ________

Answer: 11.070 Difficulty: Medium Goal: 2

79. What is the critical value at the 1% level of significance? ________

Answer: 15.086 Difficulty: Medium Goal: 2

80. What is the expected frequency for each candidate? ______

Answer: 170 Difficulty: Medium Goal: 2

81. What is the computed chi-square statistic? ___________________

Answer: 59.70588 Difficulty: Medium Goal: 2

82. What is your decision at the 1% level of significance? __________________________________

Answer: Reject H0; preferences among the candidates exist Difficulty: Medium Goal: 2

Statistical Techniques in Business & Economics, Lind/Marchal/Wathen, 13/e 41

Multiple Choice

Use the following to answer questions 83-94:

A survey of the opinions of property owners about a street widening project was taken to determine
whether the resulting opinion was related to the distance of front footage. A randomly selected sample of
100 property owners was contacted and the results are shown below.

O p in io n
F ro n t-F o o ta g e For U n d e c id e d A g a in s t
U n d e r 4 5 fe e t 12 4 4
4 5 1 2 0 fe e t 35 5 30
O v e r 1 2 0 fe e t 3 2 5

83. How many degrees of freedom are there?

A) 2
B) 3
C) 4
D) 5
Answer: C Difficulty: Medium Goal: 3

84. What is the critical value at the 5% level of significance?

A) 7.779
B) 9.488
C) 9.236
D) 11.070
Answer: B Difficulty: Medium Goal: 3

85. What is the critical value at the 10% level of significance?

A) 7.779
B) 9.236
C) 9.488
D) 11.070
Answer: A Difficulty: Medium Goal: 3

86. What is the expected frequency for people who are undecided about the project and have property
front-footage between 45 and 120 feet?
A) 2.2
B) 3.9
C) 5.0
D) 7.7
Answer: D Difficulty: Medium Goal: 3

42 Test Bank, Chapter 17

87. What is the expected frequency for people who are in favor of the project and have less than 45 feet
of property foot-frontage?
A) 10
B) 12
C) 35
D) 50
Answer: A Difficulty: Medium Goal: 3

88. What is the expected frequency for people against the project and who have over 120 feet of property
foot-frontage?
A) 1.1
B) 3.9
C) 5.0
D) 5.5
Answer: B Difficulty: Medium Goal: 3

Fill-in-the-Blank

89. What kind of table is this classification? __________________

Answer: contingency table Difficulty: Medium Goal: 3

90. What is the null hypothesis? _____________________________________

Answer: Ho: Opinions and property front-footage are independent Difficulty: Medium Goal:
3

91. What is the alternative hypothesis? ________________________________

Answer: H1: Opinion and property front-footage are related Difficulty: Medium Goal: 3

92. What is the computed value of chi-square? __________

Answer: 6.7844 Difficulty: Hard Goal: 3

93. If the computed chi-square is 8.5, what is your decision at the 5% level of significance?
______________________________
Answer: Do not reject H0; opinion and property front-footage are independent
Difficulty: Medium Goal: 3

94. If the computed chi-square is 8.5, what is your decision at the 10% level of significance?
__________________________________
Answer: Reject H0; opinion and property frontage are not independent Difficulty: Medium
Goal: 3

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44 Test Bank, Chapter 17
Multiple Choice

Use the following to answer questions 95-101:

A recent study of the relationship between social activity and education showed the following results.

S o c ia l A c tiv ity
E d u c a tio n A bove Av erag e A v e ra g e B e lo w A v e ra g e
C o lle g e 30 20 10
H ig h S c h o o l 20 40 90
G ra d e S c h o o l 10 50 130

95. The appropriate test to analyze the relationship between social activity and education is:
A) regression analysis
B) Analysis of variance
C) Contingency table analysis
D) Goodness-of-fit
Answer: C Difficulty: Easy Goal: 3

96. The appropriate test statistic for the analysis is a:

A) F-statistic
B) T-statistic
C) Chi-square statistic
D) Z-statistic
Answer: C Difficulty: Easy Goal: 3

97. The null hypothesis for the analysis is:

A) There is no relationship between social activity and education.
B) The correlation between social activity and education is zero.
C) As social activity increases, education increases.
D) The mean of social activity equals the mean of education.
Answer: A Difficulty: Easy Goal: 3

98. The degrees of freedom for the analysis is:

A) 1
B) 2
C) 3
D) 4
Answer: D Difficulty: Easy Goal: 3

Statistical Techniques in Business & Economics, Lind/Marchal/Wathen, 13/e 45

99. Using 0.05 as the significance level, what is the critical value for the test statistic?
A) 9.488
B) 5.991
C) 7.815
D) 3.841
Answer: A Difficulty: Easy Goal: 3

100. What is the value of the test statistic?

A) 100
B) 135.24
C) 50
D) 4.94
Answer: B Difficulty: Medium Goal: 3

101. Based on the analysis, what can be concluded?

A) Social activity and education are correlated.
B) Social activity and education are not related.
C) Social activity and education are related.
D) No conclusion is possible.
Answer: C Difficulty: Medium Goal: 3

Use the following to answer questions 102-106:

Recently, students in a marketing research class were interested in the driving behavior of students.
Specifically, the marketing students were interested if exceeding the speed limit was related to social
activity. They collected the following responses from 100 randomly selected students:

Speeds D oes N ot Speed

M a le s 40 25
F e m a le s 10 25

102. The null hypothesis for the analysis is:

A) There is no relationship between gender and driving behavior.
B) The correlation between driving behavior and gender is zero.
C) As driving behavior increases, gender increases.
D) The mean of driving behavior equals the mean of gender.
Answer: A Difficulty: Easy Goal: 3

103. The degrees of freedom for the analysis is:

A) 1
B) 2
C) 3
D) 4
Answer: A Difficulty: Easy Goal: 3

46 Test Bank, Chapter 17

104. Using 0.05 as the significance level, what is the critical value for the test statistic?
A) 9.488
B) 5.991
C) 7.815
D) 3.841
Answer: D Difficulty: Easy Goal: 3

105. What is the value of the test statistic?

A) 83.67
B) 9.89
C) 50
D) 4.94
Answer: A Difficulty: Medium Goal: 3

106. Based on the analysis, what can be concluded?

A) driving behavior and gender are correlated.
B) driving behavior and gender are not related.
C) driving behavior and gender are related.
D) No conclusion is possible.
Answer: C Difficulty: Medium Goal: 3

Essay

107. If we wanted to see if tossing a die (a cube with the sides numbered one through six) had an equal
chance of showing each side or number, what statistical test should be applied?
Answer: A chi-square, Goodness of fit test Difficulty: Easy Goal 2

108. If an employee wanted to investigate the relationship between performance rating and gender, what
type of analysis should be used?
Answer: Chi-square test, contingency table analysis Difficulty: Easy Goal: 3

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