In: Economics
Consider the following contingency table of observed frequencies. Complete parts a. through d. below.
Column Variable
Row Variable
C1
C2
C3
R1
7
6
9
R2
11
9
8
a. Identify the null and alternative hypotheses for a chi-square test of independence with based on the information in the table. This test will have a significance level of
α=0.05.
Choose the correct answer below.
A.
H0:
The variables
R1,
R2,
C1,
C2,
and
C3
are independent.
H1:
At least one of the variables is not independent.
B.
H0:
The row and column variables are independent of one another.
H1:
The row and column variables are not independent of one another.Your answer is correct.
C.
H0:
The row and column variables are not independent of one another.
H1:
The row and column variables are independent of one another.
D.
H0:
The variables
R1,
R2,
C1,
C2,
and
C3
are independent.
H1:
None of the variables are independent.
b, Calculate the expected frequencies for each cell in the contingency table.
Column Variable |
||||
---|---|---|---|---|
Row Variable |
C1 |
C2 |
C3 |
|
R1 |
nothing |
nothing |
nothing |
|
R2 |
nothing |
nothing |
nothing |
(Round to two decimal places as needed.)
The contingency table of observed frequencies is given as follows:
C1 | C2 | C3 | Row Total | |
R1 | 7 | 6 | 9 | 22 |
R2 | 11 | 9 | 8 | 28 |
Column Total | 18 | 15 | 17 | Grand Total = 50 |
(a) Chi-square test is a test of independence between two variables. The null and alternative hypothesis for chi-square test is given by:
H0: There is no association between the row and column variables.
H1: The exists an association between the row and column variables.
Thus, for the given test the hypothesis is given by:
H0: The row and column variables are independent of one another.
H1: The row and column variables are not independent of one another.
Answer: Option (B)
(b) The expected frequencies are calculated using the following formula:
Expected Frequency = (Row Total * Column Total) / Grand Total
The contingency table of expected frequencies is calculated as follows:
C1 | C2 | C3 | Row Total | |
R1 | 22*18/50 = 7.92 | 22*15/50 = 6.60 | 22*17/50 = 7.48 | 22 |
R2 | 28*18/50 = 10.08 | 28*15/50 = 8.40 | 28*17/50 = 9.52 | 28 |
Column Total | 18 | 15 | 17 | Grand Total = 50 |