Question

In: Statistics and Probability

3.Problem 3 The Business Graduate School at RUM is studying the test scores from this year's...

3.Problem 3

The Business Graduate School at RUM is studying the test scores from this year's candidates. In particular, we are interested to know if the there is a dependent relationship between the candidates' verbal and quantitative scores.  

Quantitative Scores
Low High
Verbal Scores Low 39 155
High 22 170

Use an alpha = 0.025.

What is the critical value for this test?

Select one:

a. 11.14

b. 7.38

c. 3.84

d. 5.02

I just need the answer

Solutions

Expert Solution

3.

Given table data is as below
MATRIX col1 col2 TOTALS
row 1 39 155 194
row 2 22 170 192
TOTALS 61 325 N = 386

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calculation formula for E table matrix
E-TABLE col1 col2
row 1 row1*col1/N row1*col2/N
row 2 row2*col1/N row2*col2/N

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expected frequencies calculated by applying E - table matrix formulae
E-TABLE col1 col2
row 1 30.66 163.34
row 2 30.34 161.66

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calculate chisquare test statistic using given observed frequencies, calculated expected frequencies from above
Oi Ei Oi-Ei (Oi-Ei)^2 (Oi-Ei)^2/Ei
39 30.66 8.34 69.56 2.27
155 163.34 -8.34 69.56 0.43
22 30.34 -8.34 69.56 2.29
170 161.66 8.34 69.56 0.43
ᴪ^2 o = 5.42


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set up null vs alternative as
null, Ho: no relation b/w X and Y OR X and Y are independent
alternative, H1: exists a relation b/w X and Y OR X and Y are dependent
level of significance, α = 0.025
from standard normal table, chi square value at right tailed, ᴪ^2 α/2 =5.02
since our test is right tailed,reject Ho when ᴪ^2 o > 5.02
we use test statistic ᴪ^2 o = Σ(Oi-Ei)^2/Ei
from the table , ᴪ^2 o = 5.42
critical value
the value of |ᴪ^2 α| at los 0.025 with d.f (r-1)(c-1)= ( 2 -1 ) * ( 2 - 1 ) = 1 * 1 = 1 is 5.02
we got | ᴪ^2| =5.42 & | ᴪ^2 α | =5.02
make decision
hence value of | ᴪ^2 o | > | ᴪ^2 α| and here we reject Ho
ᴪ^2 p_value =0.02


ANSWERS
---------------
null, Ho: no relation b/w X and Y OR X and Y are independent
alternative, H1: exists a relation b/w X and Y OR X and Y are dependent
test statistic: 5.42
critical value: 5.02

option:D
p-value:0.02
decision: reject Ho

we have enough evidence to support the claim that  if the there is a dependent relationship between the candidates' verbal and quantitative scores.  


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