Scribd
Upload
4 views3 pages

Stats Script

The Chi-Square Test of Homogeneity is used to determine if different income groups have the same proportion of happiness, with the null hypothesis stating that proportions are equal across all groups. The test statistic calculated is 14.149, which exceeds the critical value of 7.815, leading to the rejection of the null hypothesis. This indicates that household income affects happiness levels.

Uploaded by

202420041
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
4 views3 pages

Stats Script

The Chi-Square Test of Homogeneity is used to determine if different income groups have the same proportion of happiness, with the null hypothesis stating that proportions are equal across all groups. The test statistic calculated is 14.149, which exceeds the critical value of 7.815, leading to the rejection of the null hypothesis. This indicates that household income affects happiness levels.

Uploaded by

202420041
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

The Chi-Square Test of Homogeneity is used when researchers want to determine whether

different populations or groups have the same proportion for a categorical variable.
In this problem:

 The populations are the four income groups


 The categorical response is:
o “Yes”
o “No”

The test checks whether the proportions of happiness are homogeneous (equal) across all
groups.

Step 1 – State the Hypotheses and Identify


the Claim
Null Hypothesis (H0)
The null hypothesis states that the proportions are equal across all income groups.
H0: p1=p2=p3=p4

This means:
 Income does not affect happiness.
 The proportion of people who are “very happy” is the same for all groups.

This is also the claim stated in the problem.

Alternative Hypothesis (Ha)


Ha: At least one proportion differs

This means:
 At least one income group has a different happiness proportion.
 Income may influence happiness levels.

Determine the Significance Level


The significance level given is: α=0.05

This means the researcher is willing to accept a 5% risk of incorrectly rejecting the null
hypothesis.

Step 2 – Find the Critical Value


Determine the Degrees of Freedom
For a Chi- Test of Homogeneity: df=(R−1)(C−1)
Where:
 R = number of rows
 C = number of columns
In the table:
 Rows = 2 (“Yes” and “No”)
 Columns = 4 income groups

Thus: df=(2−1)(4−1)
df = (1)(3)
df=3
Determine the Significance Level
Using the chi-square distribution table with:
df=3 α=0.05

the critical value is:


χ2= 7.815

Step 3 – Compute the Test Value


Identify the Observed and Expected Frequencies
The chi-square test compares:
 Observed values (O) → actual survey results
 Expected values (E) → values expected if the null hypothesis were true

If the observed and expected values are very different, then the null hypothesis is likely
false.
Formula for Expected Frequency
E= (Row Total)×(Column Total) / Grand Total

Computing Expected Values for “Yes”


E=(144)(100) / 400
E = 36
So every “Yes” cell has expected frequency 64.

Computing Expected Values for “No”


E=(256)(100) / 400
E = 74
So every “No” cell has expected frequency 64.

Applying the Chi-square Formula


 Test statistic: 14.149
 Critical value: 7.815
Step 4 – Make the Decision
We reject the null hypothesis. 14.149 > 7.815

Step 5 – Summarize the Result


There is sufficient evidence at the 0.05 significance level to REJECT
the claim that all income groups have the same proportion of people
who are “very happy.”

THEREFORE, household income appears to affect happiness


levels.

YATES FORMULA
• Test statistic: 14.149 still far LARGER than the critical value of 7.815

You might also like