HYPOTHESIS TESTING USING CHI-SQUARE TEST: GOODNESS-OF-FIT TEST and

TEST OF INDEPENDENCE

SCE #1. (Using Goodness-of-fit Test)

Sub-Areas A B C D Total
No. Installed 6 12 14 8 40

The city distributor of air-conditioners in the City of Malolos has divided the area into
four sub-areas. A prospective buyer of the distributorship was told that the
installations of the equipment are equally distributed. The prospective buyer took a
random sample of 40 installations performed during the past years from the
corporation’s file and found the following: Based on this information, can we say that
the units are equally distributed? Use a 5% level of significance.

A. Random samples - N = 40
B. 5% level - N≥ 40

(𝑓𝑜 − 𝑓𝑒)2
𝑥2 = ∑
𝑓𝑒

(𝑓𝑜 − 𝑓𝑒)2
𝑥2 = ∑
𝑓𝑒

fo Fe = 40/4 Fo-fe (𝑓𝑜 − 𝑓𝑒)2 (𝑓𝑜 − 𝑓𝑒)2 / fo 𝑥2

6 10 6-10 = -4 16 16/10 1.6
12 10 12-10 = 2 4 4/10 0.4
14 10 14-10 = 4 16 16/10 1.6
8 10 8-10 = -2 4 4/10 0.4
40 4

(𝑓𝑜 − 𝑓𝑒)2
𝑥2 = ∑
𝑓𝑒

(𝑓𝑜 − 𝑓𝑒)2
𝑥2 = ∑
𝑓𝑒
 (𝑓𝑜 − 𝑓𝑒)2
𝑥2 = ∑
𝑓𝑒

SCE # 2. (Using Test of Independence)

A certain school classified 1,725 students according to the following categories of

intelligence: dull, average, intelligent and family economic levels: rich, middle class
and poor. The result is as follows:

Categories of Intelligence DULL AVERAGE INTELLIGENT Total

Economic Level
RICH 81 322 233 636
MIDDLE CLASS 141 457 153 751
POOR 127 163 48 223
Total 349 942 434 1725

Using this result, can we conclude that intelligence is related to economic level? Use
1% level of significance.

Hypothesis

Null Hypothesis (Ho) µ = intelligence is related to economic

level

Alternative Hypothesis (H1) µ < intelligence is related NOT to

economic level

Level of Significance 𝘢 = 0.01

Test Statistics
 ROW
Categories of Intelligence DULL AVERAGE INTELLIGENT
Total
Economic Level
RICH 81 322 233 636
MIDDLE CLASS 141 457 153 751
POOR 127 163 48 338
COLUMN Total 349 942 434 1725

FE* expected DULL AVERAGE INTELLIGENT

RICH 128.67 347.31 160.01
MIDDLE
CLASS 151.94 410.11 188.95
POOR 68.38 184.58 85.04

All expected values are greater than 5.

(𝑜 𝑒 𝑒 − 𝑒𝑥 𝑒 𝑒 ) 2
𝑥2 = ∑
𝑒𝑥 𝑒 𝑒
𝑥^2 𝑥^2 / fe
dull / rich -47.67 -108359.29 -842.118
AVERAGE -25.31 -16215.99 -46.690
INTELLIGENT
72.99 388794.61 2429.755
MIDDLE
CLASS / rich -10.94 -1309.86 -8.621
AVERAGE 46.89 103087.13 251.364
INTELLIGENT
-35.95 -46451.19 -245.842
POOR / rich 58.62 201397.32 2945.104
AVERAGE -21.58 -10046.08 -54.427
INTELLIGENT
-37.04 -50812.69 -597.523
3,831.002
df= (3 -1)(3-1)
df = 4
3,831.002
0.1 13.277

3831.00 is greater than critical value of 13.277 reject H0. Therefore, intelligence is
related NOT to economic level.