Business Statistics

Chapter 13 | Hypothesis Testing for Categorical Data (Chi-Square Test) 455

c

2

-Test statistic:

2

2

( )

χ

−

=

∑

o e

e

f f

f

where f

o

is the observed frequency and f

e

the expected or theoretical frequency.

Expected frequency for any cell:

×

=

e

RT CT

f

N

where RT is the row total, CT the column total and N the total number of frequencies.

c

2

Test for population variance:

2

2 2

2 2

1 ( 1)

( )

−

= × − =

∑

n s

x xc

 

with degrees of freedom = n – 1.

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Case 13: Indian Bicycle Industry: Second Largest in the

World

Introduction

Bicycles are an important mode of transportation in the rural areas of

India. The country is the second-largest producer of bicycles in ...