For each of the situations in parts a through c below, state whether the proper
ID: 3155828 • Letter: F
Question
For each of the situations in parts a through c below, state whether the proper test to use is a chi-square goodness-of-fi test, a chi-square test of homogeneity, a chi-square test of independence, or some other statistical test. a) A brokerage firm wants to see whether the type of account a customer has (Silver, Gold, or Platinum) affects the type of trades that customer makes (in person, by phone, or on the Internet). It collects a random sample of trades made for its customers over the past year and performs a test. Choose the correct answer below. A. The brokerage firm should use some other statistical test because at least one of Account Type and Trade Type is quantitative. B. The brokerage firm should use a chi-square test of homogeneity because it wants to see if the distribution of one variable is the same across two different groups. C. The brokerage firm should use some other statistical test because the counts are not independent of each other. D. The brokerage firm should use a chi-square test of independence because it has one sample and two variables and wants to see if the variables are independent. E. The brokerage firm should use a chi-square goodness-of-fit test because it has a distribution for one variable and wants to see if it matches a known distribution. b) The brokerage firm from) also wants to know if the type of account affects the size of the account (in dollars). It performs a test to see if the mean size of the account is the same for the three account types. Choose the correct answer below. A. The brokerage firm should use a chi-square goodncss-of-fit test because it has a distribution for one variable and wants to see if it matches a known distribution. B. The brokerage firm should use some other statistical test because the counts are not independent of each other. C. The brokerage firm should use a chi-square test of independence because it has one sample and two variables and wants to see if the variables are independent.Explanation / Answer
The chi-square goodness of fit test is appropriate when the following conditions are met:
chi-square test of homogeneity. The test is applied to a singlecategorical variable from two different populations. It is used to determine whether frequency counts are distributed identically across different populations
chi-square goodness of fit test. The test is applied when you have one categorical variable from a single population. It is used to determine whether sample data are consistent with a hypothesized distribution.
chi-square test for independence. The test is applied when you have two categorical variables from a single population. It is used to determine whether there is a significant association between the two variables.
a) Option D : Clearly we have a single population and wants to know the effect of one variable on the other.
b) Option A. It is testing whether sample data are consistent with a hypothesized distribution
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