Which test? For each of the following situations,

Isabelle Diaz

Isabelle Diaz

Answered question


Which test? For each of the following situations, statewhether you’d use a chi-square goodness-of-fit test,a chi-square test of homogeneity, a chi-square test ofindependence, or some other statistical test:
a) A brokerage firm wants to see whether the type ofaccount a customer has (Silver, Gold, or Platinum)affects the type of trades that customer makes (in per-son, by phone, or on the Internet). It collects a randomsample of trades made for its customers over the pastyear and performs a test.
b) That brokerage firm also wants to know if the type ofaccount affects the size of the account (in dollars). Itperforms a test to see if the mean size of the account isthe same for the three account types.
c) The academic research office at a large communitycollege wants to see whether the distribution ofcourses chosen (Humanities, Social Science, orScience) is different for its residential and nonresi-dential students. It assembles last semester’s data andperforms a test.

Answer & Explanation

Avery Campbell

Avery Campbell

Beginner2022-03-12Added 6 answers

a) Consider that this sample of a study has two variables which are type of account a customer has and the type of trade a customer makes. It is also mentioned in the problem that the sample collected are random. We need to make sure the two variables are independent; hence, use the chi-square test of independence
b) The question is in relation to account size. None of the mentioned chi-square test types are designed for quantitative measure. Hence, other statistical tests would have to be used.


Beginner2022-03-13Added 1 answers

c. This sample is looking at the distribution of one variable which is courses chosen (Humanities, Social Science or Science). This variable has two categories which are residential and non- residential; in order to see if the variable is different for these two groups, a chi-square test of homogeneity should be used.

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