Exam 16: Analysis of Categorical Data

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Ophelia O'Brien,VP of Consumer Credit of Credit First Banks (CFB),monitors the default rate on personal loans at the CFB member banks.One of her standards is: "no more than 5% of personal loans should be in default." On each Friday,the default rate is calculated for a sample of 500 personal loans.Last Friday's sample contained 30 defaulted loans.Ophelia's null hypothesis is ___.

(Multiple Choice)
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Sam Hill,Director of Media Research,is analyzing subscribers to the Life West of the Rockies magazine.He wonders whether subscriptions are influenced by the head of household's employment classification.His staff prepared the following contingency table from a random sample of 300 households: Sam Hill,Director of Media Research,is analyzing subscribers to the Life West of the Rockies magazine.He wonders whether subscriptions are influenced by the head of household's employment classification.His staff prepared the following contingency table from a random sample of 300 households:   Sam's null hypothesis is ___. Sam's null hypothesis is ___.

(Multiple Choice)
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A variable contains five categories.It is expected that data are uniformly distributed across these five categories.To test this,a sample of observed data is gathered on this variable resulting in frequencies of 26,10,17,21,and 26.Using α\alpha = .01,the critical chi-square value is ___.

(Multiple Choice)
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A variable contains five categories.It is expected that data are uniformly distributed across these five categories.To test this,a sample of observed data is gathered on this variable resulting in frequencies of 27,30,29,21,and 24.Using α\alpha = .01,the critical value of chi-square is ___.

(Multiple Choice)
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A researcher believes that a variable is Poisson distributed across six categories.To test this,the following random sample of observations is collected:  A researcher believes that a variable is Poisson distributed across six categories.To test this,the following random sample of observations is collected:    Using  \alpha  = 0.10,the critical value of chi-square for the data is ___. Using α\alpha = 0.10,the critical value of chi-square for the data is ___.

(Multiple Choice)
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Catherine Chao,Director of Marketing Research,is evaluating consumer acceptance of alternative toothpaste packages.She wonders whether acceptance is influenced by children in the household.Her staff prepared the following contingency table from a random sample of 100 households:  Catherine Chao,Director of Marketing Research,is evaluating consumer acceptance of alternative toothpaste packages.She wonders whether acceptance is influenced by children in the household.Her staff prepared the following contingency table from a random sample of 100 households:    Using  \alpha  = .05,the appropriate decision is ___. Using α\alpha = .05,the appropriate decision is ___.

(Multiple Choice)
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The number of degrees of freedom in a chi-square goodness-of-fit test is the number of categories minus the number of parameters estimated.

(True/False)
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Use the following set of observed frequencies to test the independence of the two variables.Variable one has values of 'A' and 'B';variable two has values of 'C','D',and 'E'.  Use the following set of observed frequencies to test the independence of the two variables.Variable one has values of 'A' and 'B';variable two has values of 'C','D',and 'E'.    Using  \alpha  = 0.05,the critical chi-square value is ___. Using α\alpha = 0.05,the critical chi-square value is ___.

(Multiple Choice)
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A variable contains four categories.It is expected that data are uniformly distributed across these four categories.To test this,a sample of observed data is gathered on this variable resulting in frequencies of 22,35,32,and 21.Using α\alpha = .05,the critical chi-square value is ___.

(Multiple Choice)
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A researcher believes that a variable is Poisson distributed across six categories.To test this,the following random sample of observations is collected:  A researcher believes that a variable is Poisson distributed across six categories.To test this,the following random sample of observations is collected:    Using  \alpha  = 0.10,the observed chi-square value for this goodness-of-fit test is ___. Using α\alpha = 0.10,the observed chi-square value for this goodness-of-fit test is ___.

(Multiple Choice)
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Catherine Chao,Director of Marketing Research,is evaluating consumer acceptance of alternative toothpaste packages.She wonders whether acceptance is influenced by children in the household.Her staff prepared the following contingency table from a random sample of 100 households: Catherine Chao,Director of Marketing Research,is evaluating consumer acceptance of alternative toothpaste packages.She wonders whether acceptance is influenced by children in the household.Her staff prepared the following contingency table from a random sample of 100 households:   Catherine's null hypothesis is ___. Catherine's null hypothesis is ___.

(Multiple Choice)
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Anita Cruz recently assumed responsibility for a large investment portfolio.She wonders whether industry sector influences investment objective.Her staff prepared the following contingency table from a random sample of 200 common stocks: Anita Cruz recently assumed responsibility for a large investment portfolio.She wonders whether industry sector influences investment objective.Her staff prepared the following contingency table from a random sample of 200 common stocks:   Anita's null hypothesis is ___. Anita's null hypothesis is ___.

(Multiple Choice)
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In a chi-square test of independence the contingency table has 4 rows and 3 columns.The number of degrees of freedom for this test is 6.

(True/False)
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Sam Hill,Director of Media Research,is analyzing subscribers to the Life West of the Rockies magazine.He wonders whether subscriptions are influenced by the head of household's employment classification.His staff prepared the following contingency table from a random sample of 300 households:  Sam Hill,Director of Media Research,is analyzing subscribers to the Life West of the Rockies magazine.He wonders whether subscriptions are influenced by the head of household's employment classification.His staff prepared the following contingency table from a random sample of 300 households:    Using  \alpha  = .05,the appropriate decision is ___. Using α\alpha = .05,the appropriate decision is ___.

(Multiple Choice)
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Anita Cruz recently assumed responsibility for a large investment portfolio.She wonders whether industry sector influences investment objective.Her staff prepared the following contingency table from a random sample of 200 common stocks:  Anita Cruz recently assumed responsibility for a large investment portfolio.She wonders whether industry sector influences investment objective.Her staff prepared the following contingency table from a random sample of 200 common stocks:    Using  \alpha  = .01,the critical chi-square value is ___. Using α\alpha = .01,the critical chi-square value is ___.

(Multiple Choice)
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Anita Cruz recently assumed responsibility for a large investment portfolio.She wonders whether industry sector influences investment objective.Her staff prepared the following contingency table from a random sample of 200 common stocks:  Anita Cruz recently assumed responsibility for a large investment portfolio.She wonders whether industry sector influences investment objective.Her staff prepared the following contingency table from a random sample of 200 common stocks:    Using  \alpha  = .01,the appropriate decision is ___. Using α\alpha = .01,the appropriate decision is ___.

(Multiple Choice)
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The null hypothesis for a chi-square test of independence is that the two variables are not related.

(True/False)
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Contingency tables should not be used with expected cell frequencies ___.

(Multiple Choice)
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Sam Hill,Director of Media Research,is analyzing subscribers to the Life West of the Rockies magazine.He wonders whether subscriptions are influenced by the head of household's employment classification.His staff prepared the following contingency table from a random sample of 300 households:  Sam Hill,Director of Media Research,is analyzing subscribers to the Life West of the Rockies magazine.He wonders whether subscriptions are influenced by the head of household's employment classification.His staff prepared the following contingency table from a random sample of 300 households:    Using  \alpha  = .05,the critical value of chi-square is ___. Using α\alpha = .05,the critical value of chi-square is ___.

(Multiple Choice)
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The number of degrees of freedom in a chi-square goodness-of-fit test is the number of categories minus the number of parameters estimated minus one.

(True/False)
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