Chi-Square Test – Practice Sheet – Session 18

Electronic Component Supplier Quality Comparison. Benson Manufacturing is considering

ordering electronic components from three different suppliers. The suppliers may differ in terms of
quality in that the proportion or percentage of defective components may differ among the suppliers.
To evaluate the proportion of defective components for the suppliers, Benson has requested a sample
shipment of 500 components from each supplier. The number of defective components and the number
of good components found in each shipment are as follows.

Supplier

Component A B C

Defective 15 20 40

Good 485 480 460

➢ Formulate the hypotheses that can be used to test for equal proportions of defective components
provided by the three suppliers.

➢ Using a .05 level of significance, conduct the hypothesis test. Write your conclusion.

Research Classification of Higher Education. The Carnegie Classification of Institutes of Higher

Education categorizes colleges and universities on the basis of their research and degree-granting
activities. Universities that grant doctoral degrees are placed into one of three classifications: moderate
research activity, higher research activity, or highest research activity. The Carnegie classifications for
public and not-for-profit private doctoral degree-granting universities are summarized in the following
table.

Carnegie Classification

Type of Moderate Higher Highest

University Research Research Research
Activity Activity Activity

Public 38 76 81

Private 58 31 34
➢ Test the hypothesis that the population proportions of public universities are equal in each
Carnegie classification category. Use a .05 level of significance. What is the p-value and what
is your conclusion?

Use of social media. Social media is becoming more and more popular around the
world. Statista provides estimates of the number of social media users in various countries in 2017 as
well as the projections for 2022. Assume that the results for surveys in the United Kingdom, China,
Russia, and the United States are as follows.

Country

Use social media United Kingdom China Russia United States

Yes 480 215 343 640

 Country

Use social media United Kingdom China Russia United States

No 320 285 357 360

➢ Conduct a hypothesis test to determine whether the proportion of adults using social media is
equal for all four countries. What is the p-value? Using a .05 level of significance, what is your
conclusion?
➢ What are the sample proportions for each of the four countries? Which country has the largest
proportion of adults using social media?

Test of Independence

Airline Ticket Purchases for Domestic and International Flights. A Bloomberg

Businessweek subscriber study asked, “In the past 12 months, when traveling for business, what type of
airline ticket did you purchase most often?” A second question asked if the type of airline ticket
purchased most often was for domestic or international travel. Sample data obtained are shown in the
following table.

Type of Flight

Type of Ticket Domestic International

First Class 29 22

Business Class 95 121

Economy Class 518 135

➢ Using a .05 level of significance, is the type of ticket purchased independent of the
type of flight? What is your conclusion?
➢ Discuss any dependence that exists between the type of ticket and type of flight.

Company Reputation and Management Quality Survey. The Wall Street Journal Annual Corporate
Perceptions Study surveyed readers and asked how they rated the quality of management and the
reputation of the company for more than 250 worldwide corporations. Both the quality of management
and the reputation of the company were rated on a categorical scale of excellent, good, and fair
categorical. Assume the sample data for 200 respondents below applies to this study.

Reputation of Company

Quality of Management Excellent Good Fair

Excellent 40 25 5

Good 35 35 10

Fair 25 10 15
 ➢ Use a .05 level of significance and test for independence of the quality of management and the
reputation of the company. What is the p-value and what is your conclusion?
➢ If there is a dependence or association between the two ratings, discuss and use probabilities to
justify your answer.

Movie Critic Opinions. On a television program, two movie critics provide their reviews of recent
movies and discuss. It is suspected that these hosts deliberately disagree in order to make the program
more interesting for viewers. Each movie review is categorized as Pro (“thumbs up”), Con (“thumbs
down”), or Mixed. The results of 160 movie ratings by the two hosts are shown here.

Host B

Host A Con Mixed Pro

Con 24 8 13

Mixed 8 13 11

Pro 10 9 64

➢ Use a test of independence with a .01 level of significance to analyze the data. What is your
conclusion?
 Solutions
Electronic Component Supplier Quality Comparison

p1 = p2 = p3
a. H0:

Ha: Not all population proportions are equal

b. Observed Frequencies (fij)

Component A B C Total

Defective 15 20 40 75

Good 485 480 460 1425

Total 500 500 500 1500

Expected Frequencies (eij)

Component A B C Total

Defective 25 25 25 75

Good 475 475 475 1425

Total 500 500 500 1500

Chi-Square Calculations (fij – eij)2 / eij

Component A B C Total

Defective 4.00 1.00 9.00 14.00

Good .21 .05 .47 0.74

c 2 = 14.74

Degrees of freedom = k – 1 = (3 – 1) = 2

Using the  2 table with df = 2,  2 = 14.74 shows the p-value is less than .005.

Using software, the p-value corresponding to  2 = 14.74 is .0006.

Because the p-value < .05; reject H0. Conclude that the three suppliers do not provide equal

proportions of defective components.

Research Classification of Higher Education.

H0: 𝑝1 = 𝑝2 = 𝑝3

Ha: Not all population proportions are equal

Observed Frequencies (fij)

Carnegie Classification

Type of University Moderate Research Higher Research Highest Research Total

Activity Activity Activity

Public 38 76 81 195

Not-for-profit 58 31 34 123

private

Total 96 107 115 318

Expected Frequencies (eij)

Carnegie Classification

Type of University Moderate Research Higher Research Highest Research Total

Activity Activity Activity

Public 58.87 65.61 70.52 195

Not-for-profit 37.13 41.39 44.48 123

private

Total 96 107 115 318

Chi-Square Calculations (fij – eij)2 / eij

Carnegie Classification

Type of University Moderate Research Higher Research Highest Research Total

Activity Activity Activity

Public 7.40 1.64 1.56 10.60

Not-for-profit 11.73 2.61 2.47 16.80

private
 Total 19.13 4.25 4.03 27.40

 2 = 27.40

Degrees of freedom = (r – 1)(c – 1) = (2 – 1)(3 – 1) = 2

Using the  2 table with df = 2,  2 = 27.40 shows the p-value is less than .005.

Using software, the p-value corresponding to  2 = 27.40 is .000001.

p-value < .05; reject H0. The proportion of public universities is not equal in each Carnegie

category. The largest differences between actual and expected frequencies are in the moderate research

activity classification, for which the number of public schools is much less than expected and the

number of not-for-profit private schools is much greater than expected.

Use of social media.

p1 = p2 = p3 = p4
a. H 0:

Ha: Not all population proportions are equal

Observed Frequencies (fij)

Social Media United Kingdom China Russia USA Total

Yes 480 215 343 640 1,678

No 320 285 357 360 1,322

800 500 700 1,000 3,000

Expected Frequencies (eij)

Social Media United Kingdom China Russia USA Total

Yes 447.47 279.67 391.53 559.33 1,678

No 352.53 220.33 308.47 440.67 1,322

800 500 700 1,000 3,000

Chi-Square Calculations (fij – eij)2 / eij

Social Media United Kingdom China Russia USA Total

 Yes 2.36 14.95 6.02 11.63 34.96

No 3.00 18.98 7.63 14.77 44.38

𝜒 2 = 79.34

Degrees of freedom = df = k – 1 = (4 – 1) = 3.

Using the  2 table with df = 3,  2 = 79.34 shows the p-value is less than .005.

Using software, the p-value corresponding to  2 = 79.34 is essentially 0.

p-value  .05; reject H0. Conclude the population proportions are not all equal.

b. United Kingdom 480/800 = .60

China 215/500 = .43

Russia 343/700 = .49

United States 640/1000 = .64 (Largest with 64% of adults)

Test of Independence

Airline Ticket Purchases for Domestic and International Flights

a. H0: Type of ticket purchased is independent of the type of flight

Ha: Type of ticket purchased is not independent of the type of flight

Expected Frequencies

e11 = 35.59 e12 = 15.41

e21 = 150.73 e22 = 65.27

e31 = 455.68 e32 = 197.32

Ticket Flight Observed Frequency (fi) Expected Frequency Chi-Square

(ei) (fi – ei)2 / ei

First Domestic 29 35.59 1.22

International 22 15.41 2.82

Business Domestic 95 150.73 20.61

 International 121 65.27 47.59

Full fare Domestic 518 455.68 8.52

International 135 197.32 19.68

Totals: 920 c 2 = 100.43

Degrees of freedom = (r – 1)(c – 1) = (3 – 1)(2 – 1) = 2.

Using the  2 table with df = 2,  2 = 100.43 shows the p-value is less than .005.

Using software, the p-value corresponding to  2 = 100.43 is .0000.

p-value  .05; reject H0. Conclude that the type of ticket purchased is not independent of the type of flight. We

can expect the type of ticket purchased to depend upon whether the flight is domestic or international.

b. Column Percentages

Type of Flight

Type of Ticket Domestic International

First class 4.5% 7.9%

Business class 14.8% 43.5%

Economy class 80.7% 48.6%

➢ A higher percentage of first class and business class tickets are purchased for international

flights compared to domestic flights. Economy class tickets are purchased more for

domestic flights. The first class or business class tickets are purchased for more than 50% of

the international flights; 7.9% + 43.5% = 51.4%.

Company Reputation and Management Quality Survey.

a. H0: Quality of management is independent of the reputation of the company

Ha: Quality of management is not independent of the reputation of the company

Observed Frequencies (fij)

Quality of Management Excellent Good Fair Total

Excellent 40 25 5 70
 Good 35 35 10 80

Fair 25 10 15 50

Total 100 70 30 200

Expected Frequencies (eij)

Quality of Management Excellent Good Fair Total

Excellent 35.0 24.5 10.5 70

Good 40.0 28.0 12.0 80

Fair 25.0 17.5 7.5 50

Total 100 70 30 200

Chi-Square Calculations (fij – eij)2 / eij

Quality of Management Excellent Good Fair Total

Excellent .71 .01 2.88 3.61

Good .63 1.75 .33 2.71

Fair .00 3.21 7.50 10.71

c 2 = 17.03

Degrees of freedom = (r – 1)(c – 1) = (3 – 1)(3 – 1) = 4.

Using the  2 table with df = 4,  2 = 17.03 shows the p-value is less than .005.

Using software, the p-value corresponding to  2 = 17.03 is .0019.

p-value < .05; reject H0. Conclude that the rating for the quality of management is not independent of

the rating for the reputation of the company.

b. Using the highest column probabilities, if the reputation of the company is:

Excellent—There is a 40/100 = .40 chance the quality of management will also be excellent.

Good—There is a 35/70 = .50 chance the quality of management will also be good.

Fair—There is a 15/30 = .50 chance the quality of management will also be fair.

The highest probabilities are that the two variables will have the same ratings. Thus, the two ratings are associated.
Movie Critic Opinions.

Expected frequencies:

e11 = 11.81 e12 = 8.44 e13 = 24.75

e21 = 8.40 e22 = 6.00 e23 = 17.60

e31 = 21.79 e32 = 15.56 e33 = 45.65

Observed Frequency Expected Frequency Chi-Square

Host A Host B (fi) (ei) (fi – ei)2 / ei

Con Con 24 11.81 12.57

Con Mixed 8 8.44 .02

Con Pro 13 24.75 5.58

Mixed Con 8 8.40 .02

Mixed Mixed 13 6.00 8.17

Mixed Pro 11 17.60 2.48

Pro Con 10 21.79 6.38

Pro Mixed 9 15.56 2.77

Pro Pro 64 45.65 7.38

 2 = 45.36

Degrees of freedom = (r – 1)(c – 1) = (3 – 1)(3 – 1) = 4

Using the  2 table with df = 2,  = 45.36 shows the p-value is less than .005.
2

Using software, the p-value corresponding to  2 = 45.36 is .0000.

p-value  .01; reject H0. Conclude that the ratings of the two hosts are not independent. The host responses are
more similar than different and they tend to agree or be close in their ratings