Chi-Sqrare Tests I

and Non parametricTests I

I
rl

ill

USINGSTATISTICS
@T.C.ResortProperties

CHI.SOUARE
TESTFORTHE DIFFERENCE 12.6 KRUSKAL.WALLISRANK TEST:
BETWEENTWO PROPORTIONS NON PARAMETRICANALYSIS
(TNDEPENDENT
SAMPLES) FORTHE ONE.WAYANOVA
CHI.SOUARE TESTFORDIFFERENCES 12.7 P (CD.ROMTOP'q CHLSOUARETESTFOR
AMONG MORETHAN TWO PROPORNONS A VARIANCEOR STANDARDDEVIATION
TheMarascuilo
Procedure
EXCELCOMPANIONTO CHAPTER12
CHI.SOUARE
TESTOF INDEPENDENCE El2.l UsingtheChi-Square
Testfor the
DifferenceBetween
TwoProportions
MCNEMARTESTFORTHE DIFFERENCE
812.2 UsingtheChi-Square
Testfor the
BETWEENTWO PROPORTIONS
Differences
AmongMoreThanTwoProportions
(RELATED
SAMPLES)
EI2.3 UsingtheChi-Square
Testof Independence
WLCOXON RANK sUM TEST E12.4UsingtheMcNemar Test
NONPARAMETRICANALYSISFOR 812.5 UsingtheWilcoxonRankSumTest
TWOINDEPENDENT POPULATIONS E12.6UsinstheKruskal-Wallis
RankTest

In this chapter,you learn:

I How andwhento usethe chi-squaretestfor contingencytables
I How to usethe Marascuiloprocedurefor determiningpairwisedifferences
when evaluatingmore than two proportions
I How and when to usethe McNemar test
r How andwhento usenonparametric tests
 -'!

462 CHAPTERTWELVE Chi-Souare

TestsandNonoarametric
Tests
I
,g:
I

Using Statistics@ T.C. Resort Properties

Youarethe managerof T.C.ResortProperties, a collectionof fiveq
hotels locatedon two resort islands.Guestswho are satisfiedwil
quality of servicesduring their stayare more likely to returnona i
vacationandto recommendthe hotelto friendsandrelatives. Toasse
quality of servicesbeingprovidedby your hotels,guestsareenco
to completea satisfactionsurveywhen they checkout.Youneedtc
lyze the datafrom thesesurveysto determinethe overallsatisfactio
the servicesprovided,the likelihoodthattheguestswill returntothe.
and the reasonssomeguestsindicatethat they will not return.Fore
ple, on one island,T.C. ResortPropertiesoperatesthe Beachcom
Windsurferhotels.Is the perceivedquality at the Beachcomber Hot
sameas at the WindsurferHotel?If a differenceis present,howca
use this informationto improvethe overallquality of serviceal
ResortProperties? Furthermore,if guestsindicatethat theyarenot
ning to return,whatarethe mostcommonreasonsgivenfor thisdec
Are the reasonsgivenuniqueto a certainhotelor commonto all hotelsoperatedby T.C.R
Prooerties?

precedingthreechapters,you usedhypothesis-testing procedures

Jn the to analyz
Inumerical and categoricaldata.Chapter9 presenteda variety of one-sample test
Chapter10 developedseveraltwo-sampletests.Chapterl1 discussed the analysisof va
(ANOVA) that you useto studyone or two factorsof interest.This chapterextendshypo
testingto analyzedifferencesbetweenpopulationproportionsbasedon two or moresan
in thejoint responses
as well as the hypothesisof independence to two categorical var
The chapterconcludeswith nonparametric testsas alternativesto severalhypothesis test
sideredin Chaotersl0 and I I .

,12.1 CHI.SOUARE
TESTFORTHEDIFFERENCE
BETWEEN
(TNDEPENDENT
TWO PROPORTTONS SAMPLES)
In Section10.3,you studiedtheZ testfor the differencebetweentwo proportions.In thi
tion, the dataareexaminedfrom a differentperspective. The hypothesis-testing procedu
a test statisticthat is approximatedby a chi-square1X21 distribution.The resultsof this1
areequivalent to thoseof theZtest described in Section10.3.
If you are interestedin comparingthe countsof categoricalresponses betweentwo
pendentgroups,you candevelopa two-waycontingencytable (seeSection2.4)to disp
frequencyof occurrenceof successes and failuresfor eachgroup.In Chapter4, contin
tableswereusedto defineand studyprobability.
To illustratethe contingencytable,returnto the Using Statisticsscenarioconcerni
Resort Properties.On one of the islands,T.C. Resort Propertieshas two hotel
Beachcomber and the Windsurfer).In tabulatingthe responses to the singlequestion'A
likely to choosethis hotel again?"163of 227 guestsat the Beachcomber responded ye
154of 262 guestsat the Windsurferrespondedyes.At the 0.05 level of significance,is
evidenceof a significantdifferencein guestsatisfaction(asmeasured by likelihoodto ret
the hotel)betweenthe two hotels?
The contingencytabledisplayedin Table12.1hastwo rowsandtwo columnsandis
a 2 x 2 contingencytable.The cells in the tableindicatethe frequencyfor eachrow an
umn combination.
 12.l: Chi-SquareTestfor the DifferenceBetweenTwo Proportions(IndependentSamples) 463

A B L E1 2 . 1 (GROUP)
coLUMNVAR|ABTE
layouta
o2f x2 ROWVARIABLE Totals
Table
cale Successes xt x2 X
the Failures nt - Xt nz- Xz n-X
ture Totals nr n2
rthe
.ged
lna-
vith where
)tel, X, : numberof successes
in group I
am-
X, : numberof successes
in group2
and
the nt - Xt: numberof failuresin group I
you
tc. nz - Xz: numberof failuresin group2
lan- X: Xt + Xr, thetotal numberof successes
on?
sort n - X: (n, - X) + (nz- Xr), thetotal numberof failures
r, : samplesizein group I
r, : samplesizein group2
n : nt + nr: totalsamPlesize

Table 12.2 containsthe contingencytable for the hotel guestsatisfactionstudy.The

contingencytable has two rows, indicatingwhetherthe guestswould return to the hotel
(thatis, success)or would not returnto the hotel(thatis, failure),andtwo columns,one for
eachhotel.The cells in the tableindicatethe frequencyof eachrow and columncombina-
tion. The row totalsindicatethe numberof guestswho would returnto the hoteland those
who would not returnto the hotel.The column totals are the samplesizesfor eachhotel
location.

12.2 HOTEL
2 Contingency CHOOSE
HOTETAGAIN? Beachcomber Windsurfer Total
forthe Hotel
Satisfaction Yes 163 154 3t7
No 64 108 172
Total 227 262 489

To testwhetherthepopulationproportionof guestswho wouldreturnto the Beachcomber,

n, , is equalto the populationproportionof guestswho would returnto the Windsurfer,nr, you
canusethe 12 testfor equalityofproportions.To testthe null hypothesis thatthereis no differ-
encebetweenthe two populationproportions:

Ho:nr: n,

againstthe alternativethatthe two populationproportionsarenot the same:

Hl nt + Tc2

you usethe 12 teststatistic,shownin Equation( l2.l).

 464 CHAPTERTWELVE Chi-Square
TestsandNonparametric
Tests

X2TESTFORTHE DIFFERENCE
BETWEENTWO PROPORTIONS
The y2 test statisticis equalto the squareddifferencebetweenthe observed
andt
frequencies,divided by the expectedfrequencyin eachcell of the table,
summed
cellsof the table.

*'=,Ar,".Y (12.1)

where
: observedfrequency in a particular
f cell ofa conti
table

f": expectedfrequency in a particularcell

l ln general, in a
contingency table, the
degrees of freedom are
equal to the (number of
rows -1) times the (number
of columns -1).
is true
The test statistic12 approximatelyfollows a chi-squaredistributionwith I
degreeof
freedom.l
To computethe expectedfrequency,f, in any cell, you needto understand
that if the
hypothesisis true, the proportionof succissesin the two populationswill
be equal.Ther
sampleproportions you computefrom each of the two gioup. would differ
from eacho
only by chance'Eachwouldprovidean estimateof the commonpopulationparameter,
n.A
tistic that combinesthesetwo separate estimatestogetherinto one overallestimateof the
ulation parameterprovidesmore information than either of the two separate
estimates r
provideby itself.This statistic,givenby the symbol p represents
the estimatedoveralll
tion of successesfor the two groupscombined(thatis, thetotal numberof successes divi
the total samplesize).The complementof p , | - p, representsthe
estimatedoverall
portionof failuresin the two groups.Using the notationpiesented
in Tablel2.l on page
Equation(12.2) definesp

COMPUTING THE ESTIMATEDOVERALL PROPORTION

Xt*X, X
p =--=_ (r2.2)
n1 -fil2 n

To compurethe expected
for eachc.elrpertainingto success(that
l":r::t'.r, is, thecei
group
;ljfi by
iT.:_:T,.'"*:::j*-::i:2:*"!:imurtipry,il.;*nf
p-.rocompute
theexpect"d ,i,"1o.corumn totar)
ror
thecells
ffi;.";';;;,?,;;jJ"li;#,iil::rili#?lil
in thesecondro11n thecontinge-nftabi;),
total)for a groupbV0 - p). yo, _ufi,pry,'ti. .u_pt" size(or colur
The test statistic.h:yn in Equation(r2.r)
approximatelyfollows a chi_square
tio.n TableE.4) with 1 degreeof f.""aon distri
_(see Using a level of
nul
I hvpothesi
sirthecomputel
null hypothesisif the c.,mnrrrprr
*2 +^^*-,^.,^.,t^'
x',"'r'iu,iJ; ; ;;ilffi
o, you ."iaar
from the x2 distributionhavingft"gr";;i;""ao*. ;a:;:'jil!l,li,llH:n:i
"significance
Thus,the decisionrule is

RejectHoif X2 > XL;

otherwise,do not reject119.

Figure12.I illustratesthe decisionrule.

 t
(lndependentSamples) 465
12.I : Chi-SquareTestfbr the DifferenceBetweenTwo Proportions

12.1
of rejectionand
whenusing
test for
chi-square
differencebetween
s, with
o
of significance

Regionof Critical Regiono{

Nonrejection Value Rejection

be closeto zerobecausethe
If the null hypothesisis true,the computed12 statisticshould
cell,fo, and what is theoretically
squareddifferencebetweenwhat is actually observedin each
is false,then there are differencesin the population
expectedf, shouldbe very small.If Ho
to be large. However,what constitutesa
proportionsand the compuiedX2statistii is expected
difference betweenf, andf from a cell
largedifferencein a celf is relative.The sameactual
contributesmore to the 12 test thana cell
statistic
with a smallnumberof expectedfrequencies
with a largenumberof expectedfrequencies'
betweentwo proportions,
To illustratethe use of the chi-squaretest for the difference
Propertiesandthe corresponding
returnto the Using StatisticsscenarioconcerningT.c. Resort
null hypothesis(Ho:,nr: fi2).states
contingencytabledisplayedin Table 12.2onpage463.The of
that thereis no diff-erencebetweenthe proportiin of guestswho are likely to chooseeither
thesehotelsagain.To begin.

X,l Xl 1 6 3+ 1 5 4 - 317 =
0.6483
P=-j= 22'7+262 489
ny+n2

are
p is the estimateof the commonparameterfi, the populationproportionof guestswho
is true' The estimated pro-
iit.ty to chooseeitherof thesehotelsagainif the null hypothesis
of p '
portion of guestswho are not llkely to choosethesehotels again is the complement
size r the
f o
I - 0 . 6 4 8 3 : 0 . 3 5 1 7 . M u l t i p l y i n gt h e s et w o p r o p o r t i o n sb y t h e s a m p l e
Hotel givesthe numUetof guestsexpectedto choosethe Beachcomber again
Beachcomber
hotel again. In a similar manner' multiplying the
andthe numbernot expectedto choosethis
sample size yields the corresponding
t two respectiu"p.opo.iionsby the WindsurferHotel's
I expectedfrequenciesfor that group.
t

E X A M P L E1 2 . 1 COMPUTINGTHE EXPECTEDFREOUENCIES
for eachof the four cellsof Tablel2'2 onpage463'
Computethe expectedfrequencies

SOLUTION
Yes-Beachcomber: p :0.6483 andnr:227,3o.fr:147 '16
Yes-Windsurfer'.p : 0.6483andnr:262, sof": 169'84
No-Beachcomber: | - P :0.3517 andn, : 227,sofn: 79'84
No-Windsurfer: 1 - p : 0.3517andnr-- 262,sof": 92'16
observedfrequencies'
nextto the corresponding
Table12.3presentstheseexpectedfrequencies
466 cHAPTERTwELVE
Chi-SquareTestsand NonparametricTests

TABLE12.3
Comparing
the CHOOSE
HOTEL Beachcomber
Observed(fo)and AGAIN? Observed Expected
Expected(fu)
Frequencies Yes 163 147.16 154 169.84
No 64 79.84 108 92.16
Total 227 227.00 262 262.00

To testthe null hypothesisthatthe populationproportionsareequal:

Ho:nr: n,

againstthe alternativethatthe populationproportionsarenot equal:

Hr:n,+n,

you usethe observedand expectedfrequencies from Table12.3to computethe 12 test

givenby Equation( 12.I ) on page464.Table12.4presentsthe calculations.

T A B L E1 2 . 4 fo f" (f,-f") (f,-f)z (fo-f)2tf"

Computationof 12 Test 163 147.16 15.84 250.91 1 . 7|
Statisticfor the Hotel -15.84
GuestSatisfaction
t54 169.84 250.9r 1.48
64 79.84 -15.84 2s0.9r 3.14
Survey
108 92.r6 15.84 250.91 2.72
9.05

The chi-squaredistribution is a right-skewed

distributionwhoseshapedependssolely
the number of degreesof freedom. You find the critical value of the y2 test statistic from T
E.4.a portionof whichis presented
asTable12.5.

TABLE 12.5 Upper-TailArea

Findingthe X2 Degreesof
CriticalValuefrom the Freedom .995 .99 .01
Chi-SquareDistribution
with 1 Degreeof 5.024 6.63s 7.879
Freedom,Usingthe 2 0.010 0.020 5.991 7.378 9.210 10.597
0.05 Levelof 3 0.072 0.1l5 7.815 9.348 1t.345 r2.838
Significance 4 0.207 0.297 9.488 I 1.143 13.277 14.860
5 0.412 0.554 11 . 0 7 1 12.833 15.086 t6.750

The valuesin Table 12.5referto selectedupper-tailareasof the 12 distribution.A 2 x2

contingency tablehas(2 - l)(2 - l): I degreeof freedom.Usingcr:0.05, with I degree
freedom,the criticalvalueof 12 from TableI 2.5 is 3.84I . You rejectH o if the computed12 sta-
tistic is greaterthan3.841(seeFigure12.2).Because9.05> 3.841,you rejectF1o. Youconclude
thatthereis a differencein the proportionof guestswho would returnto the Beachcomber and
the Windsurfer.
 12.1: Chi-SquareTestfor the DifferenceBetweenTwo Proportions(IndependentSamples) 467

12.2
of rejection
iectionwhen
the 12 critical
with1 degreeof
atthe0.05
ofsignificance

Critical Regionof
Value Rejection

Figure 12.3representsa MicrosoftExcelworksheetfor the guestsatisfactioncontingency

table(Table 12.2 onpage 463).

',2,3
Excel
for the hotel
satisfaction
data

El2.1 to create
E t z . tt n t n a t
includesthe
for the first
of the worksheet
the basisfor
the chi-square
in cell825.

-cHllNv{8l8, 821}
-$Ul{(Fl3rG14}
-cHl0lST{B25,B21l
-lFF26 < 818, 'Roject fte null hyporhs€h'",
'Do rot reJoct
lhs null hypofhodr'J

-|F(OR{813< 5, Ct3 < 5, 814< 5, C14< 5},

'
levlolated.',' bmet.")

This worksheetincludesthe expectedfrequencies, y2 teststatistic,degreesof freedom,and

p-value.They2 teststatisticis9.0526,which is greaterthanthe criticalvalueof 3.8415(or the
p-value: 0.0026< 0.05),so you rejectthe null hypothesisthat thereis no differencein guest
satisfactionbetweenthe two hotels.Thep-valueof 0.0026is the probabilityof observingsam-
ple proportionsasdifferentasor moredifferentthanthe actualdifference(0.718- 0.588: 0.13
observedin the sampledata), if the populationproportionsfor the Beachcomberand
Windsurferhotels are equal.Thus, there is strongevidenceto concludethat the two hotelsare
significantly different with respectto guest satisfaction,as measuredby whetherthe guestis
likely to return to the hotel again.An examinationof Table 12.3on page 466 indicatesthat a
greaterproportion of guestsat the Beachcomberare likely to return than at the Windsurfer.
For the72 testtogive accurateresultsfor a2 x2 table,youmustassumethateachexpected
frequencyis at least5. Ifthis assumptionis not satisfied,you can use alternativeprocedures
suchasFisher'sexacttest(seereferences1.2. and4).
468 CHAPTERTWELVE Chi-Square
TestsandNonparametric
Tests

In the hotel guestsatisfactionsurvey,both the Z testbasedon the standardized

tribution (seeSection10.3)and the 72 test basedon the chi-squaredistribution
sameconclusion.You can explainthis result by the interrelationshipbetweenthe
normal distributionand a chi-squaredistributionwith I degreeof freedom.Forsuch
the 12 teststatisticis the squareof the Ztest statistic.For instance,in theguestsati
the computedZ teststatisticis +3.0088andthe computed^tr2teststatisticis 9.0526.
roundingerror,this latter value is the squareof +3.0088[that is, (+3.0088)2= 9
you comparethe critic-alvaluesof the test statisticsfrom the two distributions,at the
of significance,the yj valueof 3.841 is the squareof theZ value of +1.96(thatis,
Furthermore,thep-valuesfor both testsareequal.Therefore,whentestingthenull
equalityof proportions:

Ho:nr: n,
thatthepopulationproportions
againstthealternative arenot equal:
Hi nr+fi2

the Z testand the 12 test are equivalentmethods.However,if you are interestedin

whether there is evidence of a directional difference, such as fir > ltr, you must use the
with the entire rejection region located in one tail of the standardizednormal distri
Section12.2,they2 testis extendedto makecomparisons
andevaluatedifferences
proportionsamongmore than two groups.However,you cannotusethe Z testif thereare
than two groups.

Learningthe Basics 12.4Use

thefollowing contingencytable:
12.1 Dererminethe critical value of y2 with I degreeof
ffi
A B Total
freedomin eachof the followins circumstances:
a . c r: 0 . 0 1 n, : 1 6 1 20 30 50
b . c r : 0 . 0 2 5n, : l l 2 30 20 50
c.cr:0.05,n:8 Total 50 50 100

"12.2 Determinethe critical value of 12 with I degreeof a. Find the expectedfrequencyfor eachcell.
freedomin eachof the followins circumstances: b. Find the 12 statisticfor this contingencytable.Is it
a . : 0 . 0 5n, : 2 8 nificantata:0.05?
b.s:0.025,n:21 Applying the Concepts
c. cr:0.01,n:5
12.5 A sampleof 500 shopperswas selectedin a I
12.3 Usethefollowingcontingency
table: metropolitanareato determinevariousinformation
ffi cerning consumerbehavior.Among the questions
was,"Do you enjoy shoppingfor clothing?"The results
B Total
summarizedin the following contingencytable:
1 20 30 50
2 30 45 75 GENDER
Total 50 75 125
ENJOYSHOPPING
FORCIOTHING Male Female
a. Find the expectedfrequencyfor eachcell.
Yes 136 224 360
b. Comparethe observedand expectedfrequenciesfor
No 104 36 140
eachcell.
Total 240 260 500
c. Computethe 12 statistic.Is it significantat a : 0.05?
 12.I : Chi-Square
Testfor the DifferenceBetweenTwoProportions(Independent
thereevidenceof a significant differencebetweenthe
Foportionof malesandfemaleswho enjoy shoppingfor
clothingat the 0.01 level of significance?
inethep-valuein (a) and interpretits meaning.
are your answersto (a) and (b) if 206 males
shoppingfor clothing and34 did not?
the results of (a) through (c) to those of
10.33(a) through(c) on page395.
Is goodgasmileagea priority for car shoppers?A
conductedby ProgressiveInsuranceasked this
ion of both men and women shoppingfor new cars.
datawerereportedaspercentages, and no samplesizes
glven:
GENDER
Men Women
76% 84%
24% l6%
: Extractedfrom "Snapshots,"usatoday.com, June 21, 2004.
that50 men and 50 womenwere includedin the
. At the 0.05 level of significance,is there a dif-
betweenmalesand femalesin the proportion
makegasmileagea priority?
that 500 men and 500 womenwere includedin
survey. At the 0.05 level of significance,is therea
betweenmalesand femalesin the proportion
makegasmileagea priority?
the effectof samplesizeon the chi-squaretest.
Theresultsof a yield improvementstudy at a semi-
for manufacturingfacility provideddefectdatafor a
of450 wafers.The following contingencytablepre-
a summaryof the responsesto two questions:"Was a
foundon the die that producedthe wafer?" and "Is
goodor bad?"
OFWAFER
QUATITY
Good Bad Totals
14 36 50
320 80 400
334 116 450
from S. W Hall, "Analysisof Defectivityof
: Extracted
Wafersby Contingency Table,"ProceedingsInstitute
Vol.I (199a),pp. 177-183.
Sciences,
the0.05 level of significance,is there a difference
theproportionofgood andbad wafersthat have
? selected.Partialresultsare shownon page470:
Samples) 469
b. Determinethep-value in (a) and interpretits meaning.
c. What conclusionscan you draw from this analysis?
d. Comparethe results of (a) and (b) to thoseof Problem
10.35on page395.
12.8 Accordingto an Ipsospoll, the perception
of unfairnessin the U.S. tax code is spreadfairly
evenly acrossincome groups,age groups,and
educationlevels.In an April 2006 surveyof 1,005adults,
Ipsosreportedthat almost 60%o of all peoplesaidthe codeis
unfair, while slightly more that 600/oof thosemaking more
than $50,000viewed the code as unfair (Extractedfrom
"People Cry Unfairness," The Cincinnati Enquirer, April
16,2006,p.A8). Supposethat the following contingency
tablerepresentsthe specificbreakdownofresponses:
INCOMELEVEL
U.S.TAX LessThan MoreThan
CODE $5o,ooo $5o,ooo Total
Fair 225 180 405
Unfair 280 320 600
Total 505 500 1,005
a. At the 0.05 level of significance,is thereevidenceof a
differencein the proportion of adultswho think the U.S.
tax code is unfair betweenthe two incomegroups?
b. Determinethep-value in (a) and interpretits meaning.
c. Comparethe results of (a) and (b) to thoseof Problem
10.36on page396.
12.9 Where peopleturn to for news is different for vari-
ous age groups. Supposethat a study conductedon this
issue(extractedfrom P. Johnson,"Young PeopleTurn to
the Web for News," USA Today,March 23, 2006, p. 9D)
was basedon 200 respondentswho were betweenthe ages
of36 and 50 and 200 respondents who wereaboveage50.
Of the 200 respondentswho were betweenthe agesof 36
and 50, 82 got their news primarily from newspapers.Of
the 200 respondentswho were aboveage 50, 104 got their
newsprimarily from newspapers.
a. Constructa2x2 contingency table.
b. Is there evidenceof a significant differencein the pro-
portion who get their news primarily from newspapers
betweenthose 36 to 50 yearsold and thoseabove50
yearsold? (Usecr: 0.05.)
c. Determinethep-value in (a) and interpretits meaning.
d. Comparethe results of (b) and (c) to thoseof Problem
10.39on page396.
12.10 An experimentwasconductedto studythe choices
made in mutual fund selection.Undergraduateand MBA
studentswere presentedwith different S&P 500 index
funds that were identical except for fees. Suppose100
undergraduatestudents and 100 MBA students were
470 CHAPTERTWELVE Chi-Square
TestsandNonparametric
Tests

STUDENT
GROUP a . At the 0.05 level of significance,is there
differencebetweenundergraduate andMBA
FUND Undergraduate MBA the proportionwho selectedthe highesrcost
Highest-cost
fund 27 l8 b. Determinethep-valuein (a) and interpret its
Not highest-cost
fund 73 82 c . Comparethe resultsof (a) and (b) to thoseof
f 0.38on page396.
Source: ExtractedfromJ. Choi, D. Laibson, and B. Madrian,
"Why Does the Law of One Practice Fail? An Experiment
on
MutuaI Funds," www.som.yale.edu/faculty/jjcglf/fees.pdf.

12.2 CHI.SOUARETESTFOR DIFFERENCES

AMONG
MORE THAN TWO PROPORTIONS
In this section, the 12 test is extendedto compare more than two independentpopulation
letter c is used to representthe number of independentpopulations under consideration.
the contingency table now has two rows and c columns. To test the null hypothesis
that
no differencesamong the c population proportions:

Hot f t l : "' -
ftz- ltL

againstthe alternativethat not all the c populationproportionsareequal:

H,: Not all n,are equal(wherej : 1,2, . . . , c)

youuseEquation
(12.1)on page464:

(-f"--f")2
u
^ L2r = 5.
a// cells re

where

f: observed
frequency
in a particularcell ofa 2x c con
table

-f": expectedfrequencyin a particularcell

is true
If the null hypothesisis true and the proportionsare equalacrossall c populations,
c sampleproportionsshoulddiffer only by chance.In sucha situation.a statisticthatcombi
these c separateestimates into one overall estimate of the population proportion,
7g,provi
more information than any one of the c separateestimatesalone. To expand on Equation
(ll
on page 464,the statistic p in Equation (12.3) representsthe estimated overall proportion
all c groupscombined.

COMPUTING
THEESflMATED pRopoRTtoNFoR c cRoups
OVERALL

(12.3)

To computethe expectedfrequency, for eachcell in the first row in the continger

f,
table,multiply eachsamplesize(or columntotal)bv p. To computetheexpectedfrequen-cy,
for each cell in the secondrow in the contingency table, multiply each sample
size (or coL
total) by (l - p). The test statisticshown in Equation(12.1) on page 464 approximately
lows a chi-squaredistribution, with degreesof freedom equal to the number of rows
in the
 l2 2: Chi-squared
Tcstfor Differcnces
AmongMoreThanTwoProportrons47 |

fa tingency table rninus I, tirnesthe number of columns in the table minus L For a 2 x c contin-
in gency table, there are c - I degreesof freedom:

J s f f r e e d o r n- ( 2 -
Degreeo l)(r'- 1): c- I
)m
Using the level of significanceo(,you rejectthe null hypothesisif the computed12 test statistic
is greater than f,i'. the upper-tail critical value from a chi-squaredistribution having c - I
degreesof freedom.Therefbre,the decisionrule is

Reject Hgif y2 > yl,:

otherwise. do not reject Hs.

F i s u r e 1 2 . 4i l l u s t r a t e st h e d e c i s i o nr u l e .
he
!S' FIGURE
12.4
Ire Regions of rejection
andnonrejection when
for differences
testing
among c ploportrons
usingthe Xztest

R e g i o no f Critical R e g i o no f
Nonrejection Value Rejection

To illustratethe 12 test for equality of proportionswhcn there are more than two groups,
return to the Using StatisticsscenarioconcerningT.C. Resort Properties.A similar surveywas
recently conductedon a diff'erentisland on which T.C. Resort Propertieshas three diflerent
hotels. Table 12.6 presentsthe responsesto a question concerning whether guestswould be
likely to choosethis hotel again.

T A B L E1 2 . 6 HOTEL
ne 2x 3 Contingency CHOOSE
HOTEL
AGAIN GoldenPalm PalmRoyale PalmPrincess Total
ES TableforGuest
CS SatisfactionSurvey Yes 128 199 186 51 3
2) No 88 JJ 66 187
br Total 216 232 252 700

Becausethe null hypothesisstatesthat there are no differencesarrong the three hotels in

the proportionof guestswho would likely retLrrnagairr,you use Equation( 12.3) to calculatean
estirnateof n, the populationproportion of guestswho would likely rettrrnagain:

l)=
X, + X, +...+ X( A

)y t 1 1I 1 1 1 + " ' + n(. t1

f
e' (128+199+186) 513
m
(216+232+252)
l-
1- = 0.133
472 CHAPTER TWELVE Chi-SquareTestsand NonparametricTests

The estimatedoverallproportionof guestswho would not be likely to returnagainis the

plement,(l - P ), or 0.267. Multiplying thesetwo proportionsby the samplesizetakenat
hotelyieldsthe expectednumberof guestswho would andwouldnot likely refurn.

EXAMPLE12.2 COMPUTING
THEEXPECTED
FREOUENCIES
Compute the expectedfrequenciesfor each of the six cells in Table

SOLUTION
Y e s - G o l d e nP a l m :p : 0 . 7 3 3 a n dn r : 2 1 6 , s o { , : 1 5 8 . 3 0
Yes-Palm Royale:p : 0.733andnr: 232, so.fn: 170.02
Yes-Palm Princess:p -- 0.133andnr: 252,so-fn: 184.68
No-Golden Palm:1 - P : 0.267andnr- 216,sof": 57.70
No-Palm Royale:| - p : 0.267andnr:232, so{ : 61.98
No PalmPrincess: I - p :0.267 andnr:252, so.f": 67.32

Table12.7presentstheseexpectedfrequencies.

TABLE 12.7 HOTEL

ContingencyTableof HOTEL
CHOOSE AGAIN? GoldenPalm PalmRoyale PalmPrincess
ExpectedFrequencies
from a GuestSatisfaction Yes r5 8 . 3 0 170.02 184.68
Survevof ThreeHotels No 57.70 61.98 67.32
Total 216.00 232.00 252.00

To test the null hypothesisthat the proportions are equal:

Ho'.nr: ft2: fr3

againstthe alternativethat not all three proportions are equal:

F 1 , :N o t a l l r n , a r ee q u a l( w h e r ej : 1 , 2 , 3 ) .

You use the observed frequencies from Table 12.6 on page 471 and the expected
from Table 12.7to computethe "72test statistic(given by Equation(12.1) on page
displayed
in Table12.8.

TABLE 12.8 fo f" (f,-f") (f,-f)z (f,-f)ztf"

Computationof 12 Test 128 r 58.30 -30.30 918.09 5.80
Statisticfor the Guest
Satisfaction Survevof
199 170.02 28.98 839.84 4.94
ThreeHotels 186 184.68 1.32 t.74 0.01
88 57.70 30.30 918.09 15.91
JJ 61.98 -28.98 839.84 13.55
66 67.32 -1.32 1.74 0.02
40.23
 -
lll
l,
It
12.2: Chi-SquaredTest for Differences Amone More Than Two Prooortions 473

I
You use TableE.4 to find the critical value of the y2 teststatistic.In the guestsatisfaction I

I
survey,becausethreehotelsare evaluate4there are(2 - lX3 - l) : 2 degreesof freedom.
Using cr: 0.05,they2 criticalvaluewith2 degreesof freedomis 5.991.Becausethe computed
test statistic(X2:40.23) is greaterthan this critical value,you rejectthe null hypothesis(see I
Figure12.5).MicrosoftExcel(seeFigure12.6)alsoreportsthep-value.Likewise,because the I
I
p-value is approximately0.0000,which is lessthan cr : 0.05,you rejectthe null hypothesis. !

Further,this p-value indicatesthat there is virtually no chanceto seedifferencesthis large or

largeramongthe threesampleproportions,if the populationproportionsfor the threehotelsare
equal.Thus, thereis sufficient evidenceto concludethat the hotel propertiesare differentwith
respectto the proportion of guestswho are likely to return.

12.5
of rejection
ection when
for differences
e ProPonrons
0.05level
nce, with
of freedom
5.991
Regionof tI Regionof
Nonrejection I Rejection
Critical
Value

12.6
Excel
for the
satisfaction
Table12.6

E12.2to create

-{81e-0-Fat.r)

-€tlll||V(818, Btll
-SuI(Gl3:11.{}
-clll0lsT{8?5, B2ll
-lF€2t < 810,"Rrjrdrhe rull hyporte.b',
'Do not r.l.cl 1ft6null hypothalr'|

-lF{OR{Bl3
< t, Ci3 < 1, 013 < l, 9tl < 1. Cl4< t, 014< 1},
' kvlold.d,',' bm.r.1

For the Xz test to give accurateresults when dealing with 2 x c contineencytables, all
expectedfrequenciesmust be large.Thereis much debateamongstatisticiansaboutthe defini-
tionof large. Somestatisticians(seereference5) havefound that the test givesaccurateresults
as long as all expectedfrequencies equalor exceed0.5. Otherstatisticians, more conservative
in their approach,requirethat no more than 20o/oof the cells containexpectedfrequenciesless
47 4 CHAPTER TWELVE Chi-SouareTestsand NonoarametricTests

than5 andno cellshaveexpectedfrequencies

lessthan I (seereference3). A reasonable
promise between thesepoints of view is to make sure that each expectedfrequency is at
To accomplish this, you may need to collapse two or more low-expected-frequencyca
into one category in the contingency table before performing the test. Such merging of
goriesusuallyresultsin expectedfrequenciessufficientlylargeto conductthe 12 test
rately. If combining categoriesis undesirable, alternative proceduresare available (seere
ences1. 2 andT\.

The MarascuiloProcedure
Rejectingthenullhypothesis
inayz testofequalityofproportionsin
a2xctableonlyal
you to reach the conclusion that not all c population proportions are equal. But which of
proportionsdiffer?Becausethe resultof theX2testfor equalityof proportionsdoesnot
ically answerthis question,you need to use a multiple comparisonsproceduresuchas
Marascuiloprocedure.
The Marascuilo procedureenablesyou to makecomparisons betweenall pairsof
First, compute the observed differencespi- pi, (whereT * j'') amongall c(c - l)/2 pairs.
use Equation (12.4) to compute the correspondingcritical rangesfor the Marascuilo proc

CRITICALRANGEFORTHE MARASCUILO
PROCEDURE
P1Q-P) , ni,(r* pi,)
,unf"= ,ffi
Critical (r2.4)
njnj'

You need to compute a different critical range for each pairwise comparison of sample
portions. ln the final step, you compare each of the c(c - l)12 pairs of sample proport
againstits correspondingcriticalrange.You declarea specificpair significantlydifferentif
absolutedifferencein the sampleproportionslpi- prl is greaterthanits criticalrange.
To apply the Marascuiloprocedure,returnto the guestsatisfactionsurvey.Usingthe
test,you concludedthat therewas evidenceof a significantdifferenceamongthe
proportions.Becausethereare threehotels,thereare (3X3 - 1)12: 3 pairwiseco
From Table12.6onpage471,the threesampleproportionsare

x1
Pt=- 0.593
n1

x1 199
Dt:1=-=0.858
n2 232
x, 186
Dt=L=_=0.738
nj 252

Using TableE.4 andan overalllevel of significanceof 0.05,the upper-tailcritical

distributionhaving(c - l): 2 degreesof freedom
of the y2 test statisticfor a chi-square
5 . 9 9 1T. h u s .

=Jrssr=2.448
F
Next, you computethe threepairsof absolutedifferencesin sampleproportions and their
respondingcritical ranges.If the absolutedifferenceis greaterthan its critical range, the
portionsaresignificantlydifferent:
 12.2: Chi-squaredTestfor DifferencesAmongMoreThanTwoProportions 475

AbsoluteDifferencein Proportions Critical Range

pj(l-pj)
lPi - Pi4 2.448 +pj,(l-pj,)

( 0 . 8 5 8 X 0 . 1 4_
2 \n ,
l p t- p zl : 1 0 .s9
- 30 .8 s81
:0.26s 1 n ^ o l ( 0 . 5 9 3 X 0 . 4 0 ,7 )
L.aao.,- = v.0992
\ 216 232

lPr- Ptl: 10.s93

- 0.7381
: 0.145 ,.oor^@=o.lo63
\ 2t6 2s2

- 0 .7 381
: 0.120 ,,o /(0.858X0.142) . (0.7381(0.262\
\ -- - -'\ -----/
l p r- p zl :I0 .8 s8 L
" .a1o.t- + = 0.0880
\ 232 2s2
Thesecomputationsare shownin worksheetformat in Figure 12.7.

12.7
Excel
Proceoure

"Usingthe
Wo*sheets"
E12.2to
about this

With95% confidence,you can concludethat guestsatisfactionis higherat the PalmRoyale

(p2 : 0.858)thanat eitherthe GoldenPalm(p, : 0.593)or the PalmPrincess(f3 :0.738) and
that guestsatisfactionis alsohigherat the Palm Princessthan at the GoldenPalm.Theseresults
clearlysuggestthat managementshouldstudythe reasonsfor thesedifferencesand,in particular,
shouldtry to determinewhy satisfactionis significantly lower at the Golden Palm than at the
othertwo hotels.

the Basics a. Computethe expectedfrequencies for eachcell.

b. Computethe 12 statisticfor this contingencytable. Is it
12.11 Considera contingencytablewith two significantat cr : 0.05?
rowsandfive columns. c. If appropriate,usethe Marascuiloprocedureando:0.05
a. Findthe degreesof freedom. to determinewhich groupsaredifferent.
thecriticalvalue for 0 : 0.05.
criticalvaluefor c[ : 0.01. 12,13 Usethe followingcontingencytable:
A C Total
12.12 Usethe followingcontingencytable:
r20 30 25 7s
230 20 25 75
A B c Total
Total 50 s0 50 150
l0 30 50 90
a. Computethe expectedfrequenciesfor eachcell.
40 45 50 l3s
b. Computethe 12 statisticfor this contingencytable. Is it
50 75 100 22s
significantat cr: 0.05?
47 6 CHAPTER TWELVE Chi-SquareTestsand NonparametricTests

c. If appropriate,use the Marascuiloprocedureand o : 12.16 More shoppersdo the

0.05to determinewhich groupsaredifferent. grocery shoppingon Saturdaythanany
of the week. However. is the dav of
Applying the Concepts person does the majority of grocery shopping
12.14 A surveywasconductedin five countries.The per- age?A study cross-classifiedgrocery shoppers
by
centagesofrespondentswho said that they eat out oncea majorshopping day("MajorShopping by DayJ'
weekor moreareas follows: GrocerAnnual Report.April 30. 2002).The
reportedaspercentages,
andno samplesizeswere
Germany t0%
France 12% AGE
UnitedKingdom 28%
Greece 39% DAY Under35 35-54
MAJORSHOPPING
UnitedStates 57% Saturday 24% 28%
Source;Adaptedfrom M. Kissel, "AmericansAre Keen on
A dayotherthanSaturday 76% 72%
Cocooning,"The Wall StreetJournal,July 22, 2003,p. D3.
Source: Extractedfrom "Major Shopping by Da1,,"
Supposethatthe surveywasbasedon 1,000respondents in GrocerAnnual Report,April 30, 2002.
eachcountry.
a. At the 0.05 level of significance,determinewhether Assumethat 200 shoppersfor eachage cal
there is a significantdifferencein the proportionof surveyed.
peoplewho eat out at leastoncea week in the various a. Is thereevidenceof a sienificantdifference
countries. agegroupswith respectto majorgrocerys
b. Findthep-valuein (a) and interpretits meaning. ( U s ea : 0 . 0 5 . )
c. If appropriate,
usetheMarascuiloprocedure anda:0.05 b. Determinethep-valuein (a) andinterpretits
to determinewhich countriesare different.Discussyour c. If appropriate,usethe Marascuiloprocedureandc,
results. to determinewhich agegroupsaredifferent.Di
12,15 Is the degreeto which studentswithdraw from results.
introductorybusinessstatisticscoursesthe samefor online d. Discussthe managerialimplicationsof (a) and(c).
coursesand traditionalcoursestaught in a classroom? cangrocerystoresusethis informationto improve
ProfessorConstanceMclaren at IndianaStateUniversity ketineandsales?Be specific.
collecteddata for five semestersto investigatethis ques- 12.17 Repeat(a) through(b) of Problem12.16,
tion. The following table cross-classifies introductory that only 50 shoppersfor eachagecategorywere
businessstatisticsstudentsby the type of course(class- Discussthe implicationsof samplesizeon the X2
room or online) and studentpersistence(active,dropped differencesamongmorethantwo populations.
or vanished):
12.18 An experimentwas conductedby James
STUDENT
PERSISTENCE David Laibson,and Brigitte Madrianto studythe
madein fund selection.Whenpresented with fourS&P
TYPEOFCOURSE Active Dropped Vanished indexfundsthat wereidenticalexceptfor theirfees,
Classroom 127 8 4 graduateand MBA studentschosethe fundsasfol
Online 8l 5l 20 percentages):

Source: Extractedfrom C. McLaren, "A Comparison of Student

FUND
Persistenceand Performance in Online and ClassroomBusiness
Statistics Erperiences," Decision SciencesJournal of Innovative
Second- Third-
Education, Spring 2004, 2(1), pp. 1-10. Published by the Decision
SciencesInstitute, headquarteredat Georgia State University,
STUDENT Lowest Lowest Lowest
Atlanta. GA. GROUP Cost Cost Cost

a. Is there evidence of a difference in student persistence Under-

(active, dropped" or vanished) based on type of course?
graduates 37 t7 27
(Usecr: 0.05.) MBA 40 ZJ l8
b. Computethep-valueandinterpretits meaning. Source: Extracted/rom J. Choi, D. Laibson, and B. Madrian,
c. If appropriate,
usetheMarascuiloprocedureando:0.05 "Why Does the Law of One Practice? An Experiment in Mutual
to determinewhich groupsaredifferent. Funds," www.som.yale.edu/facultyijjcS3/fees.pdf.
 12.3:Chi-SquareTestoflndependence
477

whetherthereis a differencein the fund selec- PLANS

(lowestcost, second-lowestcost, third-lowestcost, Not Start Work Work
cost)basedon the studentgroup.(Usea: 0.05.) Work Own Full Part Don't
inethep-value and interpretits meaning. GENDERfor Pay BusinessTime Time Know Other
, usetheMarascuiloprocedure ando:0.05 Male 257 I 15 103 457 27 42
which groupsare different. Female 359 87 49 436 34 35
An article(Extractedfrom P.Kitchen, "Retirement
To KeepWorking," Newsday,September24,2003) a. Is there evidenceof a significant differenceamong
the resultsof a sampleof 2,001 Americansages the plans for retirementwith respectto gender?(Use
?0 who were employedfull time or part time. The o(: 0.05.)
wereasfollows: b. Determinethep-value in (a) and interpretits meaning.

12.3 CHI.SOUARE
TESTOF INDEPENDENCE
In Sectionsl2.l andl2.2,youused the y2 testtoevaluatepotentialdifferencesamongpopula-
tion proportions.For a contingencytablethat hasr rows and c columns,you can generalizethe
y2 testas a test ofindependencefor two categoricalvariables.
For
atest
""'"T,l;:ff;H:ffi:;:,'#ffi ,T"'"J'
(that is, thereis no relationshipbetweenthem).
?,: The two categoricalvariablesare dependent
(that is, thereis a relationshipbetweenthem).
Onceagain,you useEquation(12.1)on page464to computethe teststatistic:

(-f,--f")2
u
n2 = 5.
o/t'i,,, .f,
You rejectthe null hypothesisat the cr level of significanceif the computedvalueof the y2
test statisticis greaterthan 74!1,
the upper-tailcritical value from a.hi-.q,ra." distributron
with (r - lXc - l) degreesof freedom(seeFigure12.8).Thus,the decisionrule is

RejectHsif X2 > X:u;

otherwise,do not rejectHs.

testingfor

c contingelcy
usingthe 12 test

Regionof Critical Regionof

Nonrejection Value Rejection

The 72 test of independenceis similar to the y2 test for equality of proportions.The test
statisticsand the decisionrules arethe same,but the statedhypothesesand conclusionsaredif-
ferent.For example,in the guestsatisfactionsurveyof Sections12.1and 12.2,thereis evidence
of a significantdifferencebetweenthe hotelswith respectto the proportionof guestswho
478 cHAPTERTwELVE
Chi-SquareTestsand NonparametricTests

would return.From a differentviewpoint,you could concludethat thereis a significant

tionshipbetweenthe hotelsandthe likelihoodthat a guestwouldreturn.Nevertheless,
a fundamental difference between the two types of tests. The major difference is in how
samplesare selected.
In a testfor equalityof proportions,thereis one factorof interest,with two or more
These levels representsamplesdrawn from independentpopulations.The categorical
in eachsamplegroup or level are classifiedinto two categories,
suchas successand
The objectiveis to make comparisonsand evaluatedifferencesbetweenthe
successamongthe variouslevels.However,in a testfor independence, therearetwo
interest, each of which has two or more levels. You select one sample and tally thej
responsesto the two categoricalvariables into the cells of a contingency table.
To illustratethe 12 test for independence,
supposethat in the surveyon hotelguest
faction,a secondquestionwasaskedof all respondents who indicatedthatthey werenot
to return.Theseguestswereaskedto indicatethe primaryreasonfor their response. Table
I
presentsthe resulting4 x 3 contingencytable.

T A B L E1 2 . 9 HOTEL
Contingency Table of PRIMARY
REASON Golden Palm Palm
Primary Reasonfor Not
FORNOTRETURNING Palm Princess
R e t u r n i n ga n d H o t e l
Price 7 )l

Location 39 IJ 8
Roomaccommodation l3 5 l3
Other l3 8 8
Total 88 JJ 66

In Table12.9,observethat of theprimaryreasonsfor not planningto returnto thehotel,

were due to price, 60 were due to location, 3l were due to room accommodation, and29
dueto otherreasons.
As in Table72.6on page471,therewere88 guestsin theGoldenPalm,
guestsin the Palm Royale, and 66 guestsin the Palm Princesswho were not planning to
The observedfrequencies in the cellsofthe 4 x 3 contingencytablerepresent
thejointtallies
the sampledguestswith respectto primaryreasonfor not returningandthe hotel.
The null andalternativehypotheses are
110:Thereis no relationshipbetweenthe primaryreasonfor not returningandthehotel.
/1,: Thereis a relationshipbetweenthe primaryreasonfor not returningandthehotel.
To test this null hypothesis of independenceagainst the alternative that there is a rel
betweenthe two categoricalvariables,you useEquation( I 2. I ) on page464 to computethe
statistic:

(f"-f"f
u2= T
LLf

all cells r e

where
: observed frequency in a particular cell ofthe r x c
/u
contingency table

fn: expectedfrequency in a particular cell ifthe null hypothesis

of independencewere true

To computethe expectedfrequency,/, in any cell, usethe multiplicationrule for i

denteventsdiscussedon page163[seeEquation(a.7)].For example,underthe null
ofindependence,the probabilityofresponsesexpectedin the upper-left-corner cell
 12.3:Chi-SquareTestoflndependence
479

ing primaryreasonof pricefor the GoldenPalmis theproductof thetwo separate probabilities:

P(Price)andP(GoldenPalm).Here,the proportionof reasonsthat aredueto price,P(Price),is
6l/187:0.3583, andtheproportionof allresponses from the GoldenPalm,P(GoldenPalm),
is 88/187: 0.4706.If the null hypothesisis true,thenthe primaryreasonfor not returningand
the hotelareindependent:

P(Priceand GoldenPalm) = P(Price) x P(GoldenPalm)

= (0.3583)x (0.4706)
= 0.1686

The expectedfrequencyis the productof the overallsamplesize,n, and this probability,

187x 0.1686: 3 I .53.Thef valuesfor the remainingcellsarecalculated
in a similarmanner
(seeTable12.10).
Equation(12.5)presentsa simplerway to computethe expectedfrequency.

COMPUTING THE EXPECTEDFREOUENCY

The expectedfrequencyin a cell is the product of its row total and column total, divided by
the overall samplesize.

Row total x Column total

f-
(12.s)

where
row total: sumofall the frequencies
in the row
columntotal: sumof all the frequencies
in the column
r : overallsamplesize

For example,usingEquation(12.5)for the upper-left-corner

cell (pricefor the Golden
Palm).

{ - - Row total x Columntotal (67X88)

Je
= 31.53
187

and for the lower-right-corner cell (other reason for the Palm Princess),

Row total x columntotal _ (29)(66) _ tA.)A

.f" - = - j
rrt---
n 187

Table 12.10 lists the entire set of{ values.

E'.,z.10 HOTEL
Tableof PRIMARY
REASON Golden Palm Palm
Frequencies FORNOTRETURNING Palm Royale Princess Total
Reason
Returning Price 31.53 I 1.82 23.65 67
Hotel [ocation 28.24 10.59 2t.t8 60
Roomaccommodation 14.59 5.47 10.94 3l
Other 13.65 5.12 r0.24 29
Total 88.00 33.00 66.00 r87
 480 CHAPTERTWELVE Chi-Square
TestsandNonparametric
Tests

To perform the test ofindependence, you use the y2 test statistic shown in
on page 464. Here, the test statisticapproximatelyfollows a chi-squaredistribu
degreesof freedomequal to the number of rows in the contingencytable minusl,
numberof columnsin the tableminus 1:

Degrees
offreedom trrl:_
_rrr^ i] = ,

Table12.I I illustratesthe computations

for the 12 teststatistic.

TABLE 12.11 Cell (f"-f, (f"-f,

Computationof 12 Test
Price/GoldenPalm ZJ 31.53 -8.53 72.76
Statisticfor the Test
of Independence Price/PalmRoyale 7 11.82 -4.82 23.23
Price/PalmPrincess a-
)t 23.65 13.35 178.22
Location/GoldenPalm 39 28.24 10.76 115.78
Location/PalmRoyale 13 10.59 2.41 5.81
Location/PalmPrincess 8 21.18 -13.18 r73.71
Room/GoldenPalm l3 14.59 -1.59 2.53
Room/PalmRoyale 5 5.47 -0.47 0.22
Room/PalmPrincess l3 10.94 2.06 4.24
Other/GoldenPalm l3 13.65 -0.65 0.42
Other/PalmRoyale 8 5.12 2.88 8.29
Other/PalmPrincess 8 r0.24 -2.24 5.02

Using the level of significanceo( : 0.05, the upper-tailcritical value from the
squaredistributionwith 6 degreesof freedomis 12.592(seeTableE.4). Becausether
putedtest statistic12 -- Zl .+l > 12.592,you rejectthe null hypothesisof independence
Figure 12.9). Similarly, you can use the Microsoft Excel worksheetin iigure l2
Becausethep-value:0.0001 < 0.05,you rejectthe null hypothesisof indepenlence.'
p-valueindicatesthat there is virtually no chanceof having a relationshipthis
lart
largerbetweenhotelsand primary reasonsfor not returningin a sample,if th-eprimary
sonsfor not returningare independentofthe specific hotelsin the entirepopuiation.i
thereis strongevidenceof a relationshipbetweenprimary reasonfor noireturning
the hotel.

FIGURE12.9
Regionsof rejection
and nonrejection
when testingfor
independence in the
hotel guestsatisfaction
surveyexampteat
the 0.05 levelof .05
significance,
with
6 degreesof freedom
Regionof
Rejection
 12.3:Chi-SquareTestoflndependence
481

the4x3
>lefor
for not
hotel

to create
not shown
rows3
similar
IN

-Fa3 .0 . lB2{ - t}

-fi[nvFz2, B25l
-St|IGttdtS)
-ctllDlsT€z9, B25l
-lFlEl < &4, 'Rrlccalftc n.rll lporh.d.',
1)o ||ot r.r.rt lh. nlll iypolh.d.'l
-lF{OR{Bl5
< I, Cti < t, Dt5< 1, BtO< I, Cl6< t,016 < I,
Bl7 < I, c|7 < 't, Dt7< I, Blt < I, CtE< t, 018< tl
- hvlolercd.-,' b m.r.)

Examinationof the observedand expectedfrequencies(seeTable 12.ll) revealsthat

price is underrepresented asa reasonfor not returningto the GoldenPalm(thatis, "fo:23 and
f":31.53) but is overrepresented at the Palm Princess.Guestsare more satisfiedwith the
price at the GoldenPalm comparedto the Palm Princess.Location is overrepresented asa rea-
son for not returning to the Golden Palm but greatly underrepresentedat the Palm Princess.
Thus,guestsare much more satisfiedwith the locationof the Palm Princessthan that of the
GoldenPalm.
To ensureaccurateresults,all expectedfrequenciesneedto be large in order to usethe 12
test when dealingwith r x c contingencytables.As in the caseof 2 x c contingencytableson
page 471, all expectedfrequenciesshould be at least l. For casesin which one or more
expectedfrequenciesare lessthan 1, you can use the test after collapsingtwo or more low-
frequencyrows into one row (or collapsingtwo or more low-frequencycolumnsinto one col-
umn). Merging of rows or columnsusually resultsin expectedfrequenciessufficiently largeto
conductthe 12 test accurately.

Basics c. ct,: 0.01,r: 4 rows,c : 6 columns

If a contingencytable hasthreerows and
columns,how many degreesof freedomare
for they2 test for independence?
Whenperforming a y2 test for indepen-
in a contingencytable with r rows and c
determinethe upper-tailcritical valueof
in eachof the following circumstances:
4rows,c:5columns
4rows,c:5columns
d. a: 0.01,r: 3 rows,c: 6 columns
e. c[: 0.01,r: 6 rows,c: 3 columns
Applying the Concepts
12.22 During the Vietnam War, a lottery system was
instituted to choosemales to be drafted into the military.
Numbers representingdays of the year were "randomly"
selected;men born on days of the year with low numbers
were drafted first; those with high numbers were not
drafted. The table on page 452 shows how many low
482 TWELVEChi-Square
CHAPTER Tests
andNonparametric
Tests

(l -122), medium (123-244), and high (245-3 66) numbers STRESS

TEVEL
were drawnfor birth datesin eachquarterof the year: COMMUTING
TIME High Moderate
Under15 min. 95 l8
OFYEAR
QUARTER 15-45 min. 178 28
NUMBER Jan.- Apr.- Jul.- Oct.- Over45 min. l8 6 7
SET Mar. Jun. Sep. Dec. Total Total 44 19 53
Low 2l 28 35 38 122
a. At the 0.01 level of significance,is there
Medium 34 22 29 37 t22
significant relationshipbetweencommutlng
High 36 4t 28 17 122
stresslevel?
Total 9l 91 92 92 366
b. What is your answerto (a) if you usethe 0.05
significance?
a. Is thereevidencethat the numbersselectedwere signifi-
cantlyrelatedto the time of year?(Usea: 0.05.) 12.25 Where peopleturn to for newsis different
b. Would you concludethat the lottery drawing appearsto ous age groups.A study indicatedwhere di
havebeenrandom? groupsprimarilyget their news:
c. What areyour answersto (a) and(b) if the frequenciesare
AGEGROUP
MEDIA Under36 36-50
23 30 32 37
LocalTV t07 119
27 30 34 31 -a
NationalTV I) 102
4t 31 26 24 Radio 75 97
local newspaper 52 79
12.23 USA Todayreportedon preferredtypes of office Internet 95 83
communicationby differentagegroups("Talking Faceto
Facevs. GroupMeetings,"USAToday,October13,2003, At the 0.05levelof significance,is thereevidence
of
p.A1). Suppose theresultswerebasedon a surveyof 500 nificant relationshipbetweenthe agegroupand
respondentsin each age group. The results are cross- ple primarily get their news?If so, explainthe
classifiedin the followins table: 12.26 USA Todayreported on whenthe
sion of what to havefor dinner is made.
TYPEOFCOMMUNICATION
PREFERRED the results were based on a surveyof I
Face-to-face respondents and considered whether the
Group Meetingswith includedany children under l8 yearsold. The results
A6E GROUP Meetings Individuals Emails Other Total cross-classified
in the followins table:
GenerationY 180 260 50 10 500
GenerationX 2r0 190 65 35 TYPEOFHOUSEHOLD
500
Boomer 205 195 65 35 500 Twoor
Mature 200 195 50 s5 500 WHENDECISION OneAdulU Adult/
Total t9) 840 230 135 2,000 MADE No Children Children
Justbefore eating t62 54
Source:Extractedfrom"TalkingFaceto Facevs.GroupMeetings,"
ln the afternoon 73 38 69
USA Today,OctoberI 3, 2003,p. AI.
ln the morning 59 58 53
A few days before 2t 64 45
At the 0.05 level of significance, is there evidenceof a rela- The night before 15 50 45
Alwayseat the same
tionship between age group and type of communication
thing on this night 2 l6 2
preferred?
Not sure 7 6

Source:Extractedfrom "Ilhat'sfor Dinner"USAToday,

ffi 12.24 A largecorporationis interestedin deter-
mining whethera relationshipexistsbetweenthe
r0,2000.

rffi commutingtime of its employeesand the level of

problemsobservedon the job. A
stress-related
studyof I l6 assembly-lineworkersrevealsthe following:
At the 0.05levelof significance,is thereevidenceof a
nificant relationshipbetweenwhen the decisionis made
what to havefor dinner and the type ofhousehold?
 12.4: McNemarTestfor theDifferenceBetweenTwoProportions(RelatedSamples) 483

12.4 McNEMAR TESTFOR THE DIFFERENCEBETWEEN

TWO PROPORTTONS(RELATEDSAMPLES)
In Section10.3,you usedthe Ztest, andin Section12.1,you usedthe chi-square testto test
for the differencebetweentwo proportions.Thesetestsrequirethat the samplesare indepen-
dent from one another.However,sometimeswhen you are testing differencesbetweentwo
proportions,the data are from repeatedmeasurementsor matchedsamples,and thereforethe
samplesare related.Such situationsarise often in marketingwhen you want to determine
whethertherehasbeena changein attitude,perception,or behaviorfrom one time periodto
another.
To test whetherthere is evidenceof a differencebetweenthe proportionsof two related
samples,you can usethe McNemar test. If you are doing a two-tail test, you could use a test
statisticthat follows a chi-squaredistributionor onethat approximatelyfollows the normal dis-
tribution. However,if you are carrying out a one-tail test,you needto usethe test statisticthat
approximatelyfollows the normal distribution.
Table 12.12presentsthe 2 x 2 tableneededfor the McNemar test.

12.12 (GROUP)
coNDrTroN 2
(GROUP)
coNDrTroN 1 Yes No Totals
the
r Test Yes A B A+B
No C D C+D
Totals A+C B+D

where

I : numberof respondentswho answeryesto condition 1

and yes to condition 2
,B: numberof respondentswho answeryesto condition I
and no to condition 2
C: numberof respondentswho answerno to condition I
and yes to condition 2
D: numberof respondentswho answerno to condition I
and no to condition 2
n : numberof respondentsin the sample

The sampleproportionsare

PT proportion of respondents in the sample who answer yes to condition I

A+C
P2= = proportionof respondents
in the samplewho answeryesto condition2
ft

The populationproportionsare

fi1 = proportionin the populationwho would answeryes to condition I

TE2= proportionin the populationwho would answeryes to condition 2

Equation( 12.6)presentsthe McNemarteststatisticusedto test1/o:frt : T2.

484 cHAPTERTwELVE
Chi-SquareTestsand Nonparametric
Tcsts

McNEMAR TEST
, _ B-C
(t2.6)
"[Ei
wherethe teststatisticZ is approximately
normallydistributed.

To illustratethe McNemar test, supposethat a consumerpanel of n : 600 participant

selectedfor a marketing study and the panel r.nernbers are initially askedto statetheir
encesfor two competingcell phone providers,Sprint and Verizon. Supposethat, initially,
panelistssay they prefer Sprint and 3 I 8 say they prefer Verizon. After exposing the entire
to an intensivemarketing campaign strategyfor Verizon, supposethe same 600 panelists
again askedto statetheir preferences,with the following results:Of the 282 panelistswho
viously preferredSprint, 246 maintain their brand loyalty,but 36 switch to Verizon.Of the3
panelistswho initially preferredVerizon,306 remain brand loyal, but l2 switch to Sprint
r e s u l t sa r e d i s p l a y e dT a b l e 1 2 . 1 3 .

TABLE 12.13 AFTERMARKETINGCAMPAIGN

BrandLoyaltyfor Cell BEFOREMARKETING
PhoneProviders CAMPAIGN Sprint Verizon Total
Sprint 246 36 282
Verizon 12 306 318
Total 258 342 600

You use the McNemar test for these data becauseyou have repeatedmeasurements fro{
the sarneset of panelists.Each panelist gave a responseabout whether he or she preferr
Sprint or Verizon before exposureto the intensivemarketing carnpaignand then againaftd
exposureto the campaign.
To determinewhetherthe intensivemarketing carnpaignwas effective,you want to inve
tigate whether there is a difference between the population proportion who favor Verizo
before the campaign,7rl, versusthe proportion who favor Verizon after the carnpaign,nr. Th
null and alternativehypothesesare

H , r "n r - n ,
H l. nt+ Tc2

U s i n g a 0 . 0 5 l e v e l o f s i g n i f i c a n c et,h e c r i t r c a lv a l u e sa r e - 1 . 9 6 a n d + 1 . 9 6 ( s e eF i g u r e1 2 . 1
a n d t h e d e c i s i o nr u l e i s

R e j e cHt o i fZ < - 1 . 9 6 o r i f Z > + 1 . 9 6 ;

do not rejectH,,.
otherwise,

FIGURE12.11
T w o - t a i lM c N e m a r
T e s ta t t h e 0 . 0 5 l e v e l
of significance
 12.4: McNemar Test for the Difference Between Two Proportions (Related Samples) 485

For the datain Table12.13.

A:246 B:36 C:12 D:306

sothat

A + B = - 2- -4- -6-+, -3- _

6 - =2 8 2= 0 . 4 7 a n d p 2 A + C 2 4 6+ 1 2 - 258
Pl =- '.' =-=- = 0.43
n 600 600 n 600 600

Using Equation(12.6),

B_C
Z- =+ = 3.4641
4B+C {48

BecauseZ:3.4641 > 1.96,you reject110.Using thep-valueapproach(seeFigure12.12),

thep-valueis 0.0005.Because0.0005< 0.05,you rejectF1o. You canconcludethat the propor-
tion who preferredVerizonbeforethe intensivemarketingcampaignis different from the pro-
portion who prefer Verizon after exposureto the intensivemarketingcampaign.In fact, from
Table I 2. I 3, observethat more panelistsactually preferredVerizon over Sprint after exposure
to the intensivemarketingcampaign.

12.12
Excelresults
test
loyaltyof
providers

E12.4to create -c6 -87

-5ORT(€5+ 87)
€1#415

-xOilSmrpllzl
-||onrsilYtl -HiA
-2' (l - xoil$)lsr(AssFlflll
-F@1 < B1l.'Rql.d|i. illl byp.{*',
'Dc
f,ot r.l.d |i. ed l!|'ct*')

the Basics a. Computethe McNemar test statistic.

b. At the 0.05 level of significance,is there evidenceof a
thefollowing table for two relatedsamples: differencebetweengroup I and group 2?

GROUP
2
Applying the Concepts
Yes No Total
12.28 A market researcherwantedto determinewhether
46 25 7l
the proportion of coffee drinkers who preferred Brand I
l6 59 75
increasedas the result of an advertisingcampaign.A ran-
62 84 A6
dom sampleof 200 coffeedrinkerswas selected.The results
486 CHAPTER
TWELVEChi-Square
Tests
andNonparametric
Tests

indicating preferencefor Brand A or Brand,B prior to the PREFERENCE

AFTER
beginningof the advertisingcampaignand after its comple- OFADVERTISING
tion are shownin the followins table: PREFERENCE
PRIOR
TOADVERTISING Brandl BrandB
PREFERENCE
AFTERCOMPLETION BrandA 55 5
OFADVERTISING
CAMPAIGN BrandB l5 25
PREFERENCE
PRIOR Total 70 30
TOADVERTISING a. At the 0.05 levelof significance. is there
CAMPAIGN BrandI Brand.B Total the proportion who prefer Brand I is lower
BrandA l0l 9 110 advertisingthan after the advertising?
BrandB 22 68 90 b. Computethep-valuein (a) andinterpretits
Total 123 77 200 12.31 The CEO of a large metropolitanhealthcare
ity would like to assessthe effectsof recenti
a. At the 0.05 level of significance,is thereevidencethat tion of Six Sigmamanagement on customersati
the proportion of coffee drinkerswho prefer BrandI is randomsampleof 100 patients is selectedfrom a
lower at the beginningof the advertisingcampaignthan thousandsof patientswho wereat the facility thepast
at the end of the advertisingcampaign? andalsoayearago:
b. Computethep-valuein (a) andinterpretits meaning. SATISFIED
NOW
IASTYEAR
SAT|SFIED Yes No
12.29 Two candidates for governorparticipatedin a tele-
viseddebate.A political pollsterrecordedthe preferences Yes 67 5
of 500 registeredvotersin a randomsampleprior to and No 20 8
after the debate: Total 87 13
a. At the 0.05 level of significance,is thereevidence
PREFERENCE
AFTERDEBATE satisfactionwas lower last yeaq prior to introduction
Six Sigmamanagement?
PREFERENCEPRIOR Candidate Candidate
b. Computethep-value in (a) and interpretits meaning.
TO DEBATE A B Total
12.32 The personneldirector of a large department
CandidateA 269 2t 290
wantsto reduceabsenteeism amons salesassociates.
CandidateB 36 174 210
decidesto institutean incentiveplan that providesfi
Total 305 195 500
rewardsfor salesassociates who are absentfewerthan
daysin a givencalendaryear.A sampleof 100sales
a. At the 0.01 level of significance,is thereevidenceof a selectedat the end ofthe secondyear revealsthe following:
difference in the proportion of voters who favor YEAR2
CandidateA prior to and after the debate?
<5 Days )5 Days
b. Computethep-valuein (a) andinterpretits meaning.
YEAR1 Absent Absent
12.30 A taste-testingexperimentcomparedtwo brandsof
Chileanmerlotwines.After the initial comparison,60 pre-
<5 daysabsent 32 4 36
ferredBrandA, and40 preferredBrandB. The 100respon-
25 daysabsent 25 39 64
Total 57 43
dentswere then exposedto a very professionaland power-
ful advertisementpromotingBrandl. The 100respondents a. At the 0.05 level of significance,is thereevidence
werethen askedto tastethe two wines againand declare the proportion of employeesabsentfewer than 5 days
which brand they preferred.The resultsare shownin the was lower in year I than in year2?
followins table. b. Computethep-valuein (a) andinterpretits meaning.

12.5 WILCOXON RANK SUM TEST NONPARAMETRICANALYSIS

FOR TWO INDEPENDENTPOPULATIONS
'A nonparametricprocedureis a statisticalprocedurethat has(certain)desirablepropertiesthat
hold under relatively mild assumptionsregardingthe underlyingpopulation(s)from which the
dataare obtained."
-Myles HollanderandDouglasA. Wolfe (reference 4, p. l)
 12.5: Wilcoxon Rank Sum Test: Nonparametric Analysis for Two IndependentPopulations 487

In Section10.1,you usedthe I test for the differencebetweenthe meansof two indepen-

dentpopulations.If samplesizesare small and you cannotassumethat the datain eachsample
are from normally distributedpopulations,you havetwo choices:
r lJse the Wilcoxon rank sum test that doesnot dependon the assumptionof normality for
the two populations.
' Use the pooled-variance/ test,following somenormalizingtransformationonthe data(see
reference9).
This sectionintroducesthe Wilcoxon rank sum test for testing whetherthere is a differ-
encebetweentwo medians.The Wilcoxon rank sum test is almost as powerful as the pooled-
varianceand separate-variance / testsunderconditionsappropriateto thesetestsand is likely to
be morepowerfulwhenthe assumptionsof thoseI testsarenot met. In addition,you canusethe
Wilcoxon rank sum test when you haveonly ordinal data,as often happenswhen dealingwith
studiesin consumerbehaviorand marketingresearch.
To perform the Wilcoxon rank sum test, you replacethe valuesin the two samplesof size
n, andnrwith their combinedranks(unlessthe datacontainedthe ranksinitially). Youbeginby
defining n : nl + n, as the total samplesize.Next, you assignthe ranks so that rank 1 is given
to the smallestof the r combinedvalues,rank2 is given to the secondsmallest,and so on, until
rankn is given to the largest.Ifseveral valuesaretied, you assigneachthe averageofthe ranks
that otherwisewould havebeenassignedhad therebeenno ties.
For convenience, wheneverthe two samplesizesare unequal,nl representsthe smaller
sampleandnrthe largersample.The Wilcoxon rank sumtest statistic,2,, is defined asthe sum
of the ranksassignedto the n, valuesin the smallersample.(For equalsamples,eithersample
may be selectedfor determining21.)For any integervaluen, the sum of the first r consecutive
integersis n(n + 1)i2.Therefore,the test statisticZr plus T.r,thesum of the ranksassignedto
the n, itemsin the secondsample,mustequaln(n + l)l2.You canuseEquation(12.7)to check
the accuracyofyour rankings.

CHECKINGTHE RANKINGS
n{n + l)
T1+7, = (r2.7)

The Wilcoxon rank sum test can be either a two-tail test or a one-tail test, dependingon
whetheryou are testing whetherthe two populationmediansarc dffirent or whetherone
medianis greater than the othermedian:

Two-Tail Test One-Tail Test One-Tail Test

Ho:Mr: M, Hr: Mr2 M, Ho:Mr3 M,
Hr:Mr* M, H r :M r < M , Hr: Mr> M,

where
M, : medianof population I
Mr: medianof population2
Whenboth samplesn, andn2are< 10,you useTableE.8 to find the criticalvaluesof the
test statistic2,. For a two-tail test,you reject the null hypothesis(seePanelA of Figure 12.13)
if the computedvalue of 7, equalsor is greaterthan the upper critical value,or if Z, is less
than or equalto the lower critical value.For one-tailtestshavingthe alternativehypothesis
Ht: M, < M2, yotrrejectthe null hypothesisif the observedvalue of Z, is lessthan or equal
to the lower critical value(seePanelB of Figure 12.13).For one-tailtestshavingthe alterna-
tive hypothesis11,: M t> M2, you rejectthe null hypothesisif the observedvalueof Z, equals
or is greaterthan the uppercritical value (seePanelC of Figure 12.13).
+6d CHAPTER TWELVE Chi-SouareTestsand Nonoarametric Tests

til
Tr, Tr,
ti
T.,
1t\ Fr., Pt
- Regionof Rejection
' Regionof Nonrejection PanelA PanelB PanelC
H . , :M . , * M , Hr:Mr< M, Hr:.M,,> M,

FIGURE12.13 Regionsof rejectionand nonrejectionusingthe Wilcoxonranksum test

For large samplesizes,the test statisticZ, is approximatelynormally distributed,

mean,p.4, equalto

lrr,=\!

andthe standarddeviation,oz,, equalto

nrnz(n+ l)
04=
t2

Therefore,Equation(12.8)definesthe standardized
Z teststatistic.

LARGESAMPLEWILCOXONRANKsUMTEST
T -
n{n+l)
tl
z=-+ ^
(12.8)
+ l)
ln1n2(n
1n
wherethe test statisticZ approximatelyfollows a standardizednormal distribution.

YouuseEquation(12.8)for testingthe null hypothesiswhen the samplesizesareoutside

7Io test for differences in
the median sales between
the two locations, you
rnust assume that the
distributions of sales in
both populations are
tdentical except for
differences in location
(that is, the medians).
rangeof Table8.8. Basedon o, the level of significanceselected, you rejectthe null
sis if the computedZ valuefalls in the rejectionregion.
To study an applicationof the Wilcoxon rank sum test, return to the Using Statistics
nario of Chapterl0 concerningsalesof BLK cola for the two locations:normalshelf
and end-aislelocation(seepage370). If you do not think that the populationsarenormally
tributed"you can use the Wilcoxon rank sum test for evaluatingpossibledifferences in
mediansalesfor the two displaylocations.lThe data(storedin the file ElflD andthe
bined ranksare shown inTable 12.14.
Becauseyou havenot specifiedin advancewhich aislelocationis likely to havea
median,you use a two-tail test with the following null and alternativehypotheses:
Ho: Mr: Mr(the mediansalesareequal)
Hr: M, + M2(he mediansalesarenot equal)
To perform the Wilcoxon rank sum test, you computethe rankingsfor the salesfrom
nl: l0 storeswith a normal shelf displayand the nr: l0 storeswith an end-aisledi
Table 12.14orovidesthe combinedrankinss.
 12.5: Wilcoxon Rank Sum Test: Nonparametric Analvsis for Two IndependentPopulations 489

12.',,4 Sales
theCombined Normal Display Combined End-Aisle Display Combined
(n, :10) Ranking (n, = l0) Ranking
22 1.0 52 5.5
34 3.0 7l 14.0
52 5.5 76 15.0
62 r0.0 54 7.0
30 2.0 67 13.0
40 4.0 83 17.0
64 I1.0 66 12.0
84 18.5 90 20.0
56 8.0 77 16.0
59 9.0 84 18.5
Source:Data are takenJiom Table10.1 onpage 372.

The next stepis to computeTr, the sum of the ranksassignedto the smaller sample.When
the samplesizesare equal,as in this example,you can identify either sampleasthe group from
which to compute2,. Choosingthe normal display asthe first sample,
T , : | + 3 + 5 . 5+ 1 0 + 2 + 4 + 1 1+ 1 8 . 5+ 8 + 9 : 7 2
As a checkon the ranking procedure,you computeTrfrom
T 2 : 5 . 5+ 1 4 + 1 5+ 7 + 1 3+ 1 7+ 1 2 + 2 0 + 1 6 + 1 8 . 5: 1 3 8
andthenuseEquation(12.7) onpage487to showthat the sum of the first n : 20 integersin the
combinedranking is equalto T, 1-Tr:

n(nj l)
T1+T2 -
z

i2+138-20(21) =2lo
2
210 = 210
To test the null hypothesisthat there is no differencebetweenthe median salesof the two
populations,you useTable8.8 to determinethe lower- and upper-tailcritical valuesfor the test
statistic2,. FromTable12.15,a portionof TableE.8,observethat for a levelof significanceof
0.05,the criticalvaluesare78 and l32.The decisionrule is
RejectHoif Tt < 78 or if Tr2132;
otherwise,do not rejectHn.

theLower- One- Two- 789

TailCritical Tail Tail (Lower, Upper)
theWilcoxon
TestStatistic, .05 .10 16,40 24,51 33,63 43,',76 54,90 66,105
en, = 10, 9 .025 .05 14,42 22,53 31,65 40,79 51,93 62,109
anda = 0.05 .01 .02 13,43 20,55 28,68 37,82 47,97 59,112
.005 .01 11,45 18,57 26,70 35,84 45,99 56,115
.05 .10 17,43 26,54 35,67 45,81 56,96 69,1II
78.132
.01 .02 13,4',7 21,59 29,73 39,87 49,103 6l,rl9 74,136
.00s .01 ',71,139
12,48 19,61 27,75 37,89 47,105 58,122
Source: Extractedfrom Table E.8
490 cHAPTERTwELVE
Chi-SquareTestsand Nonparametric Tests

Because the teststatisticTt:72 < 78, you reject110.Thereis evidenceof a signi

ferencein the mediansalesfor the two displays.Becausethe sum of the ranksis higher
end-aisledisplay,you concludethat mediansalesare higher for the end-aisledisplay.
MicrosoftExcel worksheetin Figure 12.14,observethat thep-valueis 0.0126,whichis
than o:0.05. Thep-valueindicatesthat if the mediansof the two populationsare
chanceof finding a differenceat leastthis largein the samplesis only 0.0126.

FIGURE',,2.14
MicrosoftExcel
Wilcoxonranksum test
worksheetfor the BLK
colasalesexamole

See Section E12.5 to create -Ff + BtO

this. -lF(87<- 810,3E,8t1)
-lF{87 <- 810,87'{814 r lfD, Bl0 " (81{ + l)2}
-SQRTfBT'Bl0 * (B1r+ lVr2l
-{B1r - 816y81r

-!loRxslllv(8rz)
-lloRlslllv(l - Btlz)
-2' fl - tloRIs0lsT{ABs{81cD}
-lF(8Zl < Bl, 'RcJcafta null Ilypothrcb',
-llo noi rdc{*th! nrll hypothc'*J

TableE.8 showsthe lower and uppercritical valuesof the Wilcoxon rank sumtest
7n,,but only for situationsin which both n, andn) arelessthanor equalto 10.If either
both of the samplesizesare greaterthan10,yotmust usethe large-sampleZapproxi
formula[Equation(12.8)on page488]. However,you canalsousethis approximation
for small samplesizes.To demonstratethe large-sampleZ approximationformula,consi
BLK cola salesdata.Using Equation(12.8),

T -
n{n+l)
ll ^

11 (1ox2t)
lL--

(1Oxl0x2i)
t2
-
- 72 lo5 = -2.4946
13.2288

Z: -2.4946<-l.96,the criticalvalueof Z atlhe0.05levelof significance,

Because you

Learningthe Basics
',2.33 Using Table8.8, determinethe lower-
and upper-tailcritical valuesfor the Wilcoxon
rank sum test statistic,2,, in eachof the follow-
ing two-tailtests:
a. o : 0 . 1 0 ,n r : 6 , n r : 8
b. c r: 0 . 0 5n, r : 6 ,n r : 8
c. o : 0 . 0 1n, r : 6 , n r : 8
d. Given your resultsin (a) through (c), what do
clude regardingthe width of the region of
asthe selectedlevelofsignificancecx,gets
 12.5: WilcoxonRankSumTest:Nonparametric
Analysisfor TwoIndependent
Populations 491

UsingTable E.8, determinethe lower-tail critical graduatesspendsix months on the job, the vice president
for theWilcoxon rank sumtest statistic,2,, in eachof ranks them on the basis of their performance,from I
ineone-tailtests: (worst)to 20 (best),with the following results(storedin the
= 0 . 0 5n, r : 6 , n r : 8 fileS@@:
= 0 . 0 2 5n,r : 6 , n r : 8
= 0 . 0 1n,r : 6 , n r : 8 T | 2 3 59l0t2t31415
= 0 . 0 0 5n,r : 6 , n r : 8 E 467 8ll16t7l81920

The following information is availablefor two Is thereevidenceof a differencein the medianperforrnance

selectedfrom independentpopulations: betweenthe two methods?(Usea : 0.05.)

1: nr:1 A s s i g n erda n k s : 4I 8 2 5 l 0 1 l 12.42 Wine expertsGaiter and Brecheruse a six-category

scale when rating wines: Yech, OK, Good, Very Good,
2: nz:9 Assigned
ranks:7 16 129 3 14 136 15
Delicious,andDelicious!(D. GaiterandJ. Brecher,'A Good
is thevalueof Z, if you are testingthe null hypothe- U.S.CabernetIs Hard to Fin{' TheWallStreetJournal,May
:Mt: Mr? 19,2006,p.W7). SupposeGaiterandBrechertesteda random
sampleof eight inexpensiveCalifornia Cabernetsand a ran-
12.36 In Problem 12.35,what are the lower-
dom sample of eight inexpensiveWashingtonCabernets.
andupper-tailcritical valuesfor the test statistic
Inexpensiveis definedasa suggestedretail valuein the United
Z, from Table8.8 if you use a 0.05 level of sig-
Statesofunder $20.Thedata,storedin the@E!@file, are
andthe alternativehypothesisis Hr: Mr* M2?
asfollows:
ln Problems12.35 and 12.36.what is vour statisti- California-Goo4 Delicious, Yech, OK, OK, Very
ion? Good,Yech,OK
Washington-Very Good"OK, Delicious!,Very Good,
The following information is available for two
Delicious,Good,Delicious,Delicious!
selectedfrom independentand similarly shaped
a. Are the data collectedby rating wines using this scale
populations:
nominal, ordinal, interval, or ratio?
n t = 5 l . l 2 . 3 2 . 93 . 6 1 4 . 7 b. Why is the two-sampleI test definedin Section10.1
nz -- 6 2.84.44.45.26.0 18.5 inappropriateto test the mean rating of California
CabernetsversusWashingtonCabernets?
the observedvalues with the corresponding c. Is there evidenceof a significance differencein the
(whereI : smallestvalue;n : nr* nr: I I : largest median rating of California Cabernetsand Washington
) in thecombinedsamples. Cabernets? (Usecr: 0.05.)
is the value of the test statisticZ,?
the value of Tr, the sum of the ranks in the 12.43 In intaglio printing, a designor figure is carved
sample. beneaththe surfaceofhard metal or stone.Supposethat an
checkthe accuracyofyour rankings, use Equation experimentis designedto comparedifferencesin surface
7) on page487to demonstratethat hardnessof steelplatesusedin intaglio printing (measured
in indentationnumbers),basedon two different surface
o . d n(n+l)
Ir t Io = - conditions-untreated and treatedby lightly polishingwith
2 emery paper.In the experiment,40 steelplates are ran-
domly assigned-20 that are untreate4 and 20 that are
12.39 From Problem12.38,at the 0.05 level of
treated.The data are shown in the following table and are
significance,determine the lower-tail critical
storedin the file@ft$:
valuefor the Wilcoxon rank sum test statistic,I,,
wantto testthe null hypothesis,.F1o:
Ml> Mz, against Untreated Treated
il alternative, <
Hr: M, Mr.
164368 t77.r35 1s8,239 r50.226
ln Problems12.38and 12.39.whaIis vour statisti- ls9.0r8 163.903 138.216 r55.620
,|
153.871 167.802 168.006t51.233
165.096160.818 r49.654 158.653
the Concepts ls7.l84 167.433 14s.456 tsl.204
ts4.496 163.538 16 8 . 7
1 8 150.869
A vice presidentfor marketingrecruits 20 college
160920 164.525 154.321 161.657
for managementtraining.The 20 individuals are
164.917 r7r.230 162.763 ls1.0t6
assigned,10 each,to one oftwo groups.A "tradi-
169.091 r74.964 16t.020 t56.670
methodof training (Z) is usedin one group, and an
r 7 5 . 2 7 61 6 6 . 3I 1 167.706 t47.920
" method (E) is used in the other.After the
492 CHAPTER TWELVE Chi-squareTestsand NonparametricTests
a. Is there evidenceof a differencein the median surface
hardnessbetweenuntreatedand treated steel plates?
(Usecr: 0.05.)
b. What assumptionsmust you makein (a)?
c. Comparethe resultsof (a) with thoseof Problem10.18
(a) on page380.
12.44 Managementof a hotel was concerned
with increasingthe return rate for hotel guests.
One aspectof first impressionsby guestsrelates
to the time it takesto delivera guest'sluggageto the room
aftercheck-into the hotel.A randomsampleof 20 deliver-
ieson a particulardaywereselectedin Wing I of the hotel,
and a randomsampleof 20 deliverieswere selectedin
Wing B. The resultsare storedin the file [ElEEEf,lE.
a. Is thereevidenceof a differencein the mediandelivery
time in the two wings of the hotel?(Usecr: 0.05.)
b. Comparethe resultsof (a) with thoseof Problem10.74
on page409.
12.45 The directorof trainingfor an electronicequip-
ment manufacturerwantsto determinewhetherdifferent
training methodshave an effect on the productivityof
assembly-lineemployees.She randomly assigns 42
recentlyhired employeesto two groupsof 21. The first
group receivesa computer-assisted, individual-based
training program,and the other group receivesa team-
basedtrainingprogram.Upon completionof the training,
the employeesare evaluatedon the time (in seconds)it
takesto assemblea part.The resultsare in the datafile
@ minutes)areasfollows:
a. Using a 0.05level of significance,is there evidenceof a
difference in the median assemblytimes (in seconds)
between employeestrained in a computer-assisted,indi-
vidual-basedprogram and those trained in a team-based
program?
b. What assumptions must you make in orderto do (a) of
this problem?
c. Comparethe resultsof Problem10.20(a) on page380
with the resultsof (a) in this oroblem.Discuss.
12.46 Nondestructive evaluationis a methodthat is used
to describethe propertiesof componentsor materials
without causingany permanentphysicalchangeto the
units.It includesthe determinationof propertiesof materi-
als andthe classificationof flawsby size,shape,type,and
location.This methodis most effectivefor detectingsur-
faceflaws and characterizing surfacepropertiesof electri-
cally conductivematerials.Recently,datawere collected
that classifiedeachcomponentas havinga flaw or not,
basedon manualinspectionand operatorjudgment, and
also reportedthe size of the crack in the material.Do the
componentsclassifiedas unflawedhavea smallermedian
crack size than componentsclassifiedas flawed?The
resultsin termsof cracksize(in inches)arein the datafile
@ffiE (extractedfrom B. D. Olin andW. Q.
"Applicationsof StatisticalMethodsto
Evaluation,"Technometrics,38, 1996,p.
Unflawed
0.0030.0040.0120.0140.02r 0.0230.0240.030
0.0410.0410.0420.0430.04s0.0s70.0630.074
Flawed
0.0220.0260.0260.0300.0310.0340.0420.043
0.0460.0460.0520.0s50.0s80.0600.0600.070
0.0730.0730.0780.0790.0790.0830.0900.095
0.0960.1000 . r 0 20 . r 0 30 . r 0 50 . 1l 4 0 . 1 1 90 . 1 200.
0 . 1 6 00 . 3 0 60.3280.440
a. Usinga 0.05levelof significance,is there
the median crack size is less for unflawed
than for flawed components?
b. What assumptions mustyou makein (a)?
c. Comparethe resultsof Problem10.21(a) on page
with the resultsof (a) in this problem.Discuss.
12.47 A bank with a branchlocatedin a commercial
trict of a city has developedan improvedprocessfor
ing customersduring the noon-to-1 p.m. lunch period.
waiting time (defined as the time elapsed from when
customerentersthe line until he or shereachesthe
window)of all customersduringthis hour is recorded
a period of 1 week.A randomsampleof 15
selected(andstoredin the file[l@!), andthe
4.21 5.5s 3.02 5.13 4.77 2.34 3.54 3.20
4.s0 6.10 0.38 s.t2 6.46 6.19 3.19
Another branch, located in a residential area, is also
cerned with the noon-to-l p.m. lunch period. A
sample of l5 customers is selected (and stored in the
EEEEEE), and the results (in minutes) are as follows:
9.66 5.90 8.02 5.79 8.73 3.82 8.01 8.35
10.49 6.68 5.64 4.08 6.t7 9.9t 5.47
a. ls thereevidenceof a differencein the medianwaiti
time betweenthe two branches? (Usecr: 0.05.)
b. What assumptions mustyou makein (a)?
c . Comparethe resultsof Probleml0.la (a) on page
with the resultsof (a) in this problem.Discuss.
12.48 A problemwith a telephoneline that
customerfrom receivingor making calls is
both the customer and the telephone company.The dah
the file trElffr representsamplesof 20
reported to two different offices of a telephone
and the time to cleartheseproblems(in minutes)from
customers' lines:
 12.6: Kruskal-WallisRank Test:NonparametricAnalysis for the One-WayANOVA 493

:er, CentralOfficeI Time to Clear Problems (Minutes)
ive 1 . 4 81 . 7 50 . 7 8 2 . 8 5 0 . 5 2 1 . 6 0 4 . 1 5 3 . 9 7 1 . 4 8 3 . 1 0
1.020.53 0.93 1.60 0.80 1.05 6.32 3.93 5.45 0.97
CentralOfficell Time to Clear Problems(Minutes)
34 7 . 5 53 . 7 50 . 1 0 l . r 0 0 . 6 0 0 . s 2 3 . 3 0 2 . r 0 0 . 5 8 4 . 0 2
76 3 . 7 50 . 6 5 t . 9 2 0 . 6 0 1 . 5 3 4 . 2 3 0 . 0 8 1 . 4 8 1 . 6 5 0 . 7 2
a. ls there evidence of a difference in the rnedian time
to clear these problems betweenthe two offices? (Use
cx:0.05.)
b. What assumptionsmust you make in (a)?
c. Compare the resultsof Problem 10.16 (a) on page 379
with the resultsof (a) in this problem. Discuss.

t44
)7 r 12.6 KRUSKAL-WALLISRANK TEST:NONPARAMETRIC
ANALYSIS
)95 FOR THE ONE.WAY ANOVA
130 If the normality assumptionof the one-wayANOVA F test is not met, you can usethe Kruskal-
Wallis rank test.The Kruskal-Wallisrank test for differencesamong c'medians(wherec'> 2) is
an extension of the Wilcoxon rank sum test for two independentpopulations, discussedin
: that Section 12.5.Thus, the Kruskal-Wallistesthas the samepower relativeto the one-wayANOVA
rents F test that the Wilcoxon rank sum test has relative to the / test.
You use the Kruskal-Wallis rank test to test whether c independentgroups have equal
medians.The null hypothesisis
: 380
H u :M r : M z - - M,

I dis- and the alternative hypothesisis

serv-
l. The H' : Not all M, are equal (wherej -- 1,2, . . . , c).
:n the
To usethe Kruskal-Wallisrank test,you first replacethe valuesin the c' sampleswith their
teller
combinedranks (if necessary).Rank I is given to the smallestof the combinedvaluesand rank
Cover
r to the largestof the cornbinedvalues(where n - n1+ n2t " ' + n,.).lf any valuesare tied,you
ters is
assignthem the mean of the ranks they would have otherwise been assignedif ties had not been
rlts(in
present in the data.
The Kruskal-Wallistest is an alternativeto the one-wayAIOVA Ftest. Insteadof compar-
t0 i n g e a c ho f t h e c g r o u p m e a n s .X - , .a g a i n s t h e g r a n d r n . u n . F . t h e K r u s k a l - W a l l i st e s t c o m -
pares the mean rank in each of the c groups against the overall mean rank, basedon all n com-
bined values. If there is a significant difference among the c groups, the mean rank differs
o con- considerablyfrom group to group. In the processofsquaring thesedifferences,the test statistic
rndom F1 becomes large. If there are no differences present, the test statistic H is small becausethe
he file mean of the ranks assignedin each group shouldbe very similar from group to group.
Equation( 12.9)definesthe Kruskal-Wallistest statistic,H.
35
KRUSKAL-WALLIS
RANKTESTFORDIFFERENCES
AMONG c MEDIANS
vaiting
n=l " iUl -3(n+t\ (r2.e)
ln(n+tt7ni )
ge 379 where
n : totalnumberof valuesoverthe combinedsamples
/ents a r ? i : n u m b e r ovf a l u e isn t h e j t hs a m p l (ej : 1 , 2 , . . .,c)
ting to
datain : sumof the ranksassignedto the./h sample
f
rblems -) :
Ii squareof the sum of the ranksassignedto the/h sample
mpany
om the c : numberof groups
494 CHAPTERTWELVE Chi-Square
TestsandNonparametric
Tests

As the sample sizes in each group get large (that is, greater than 5), you can
the test statistic,H,by the chi-squaredistributionwith c - I degreesof freedom.
reject the null hypothesisif the computedvalue of 11is greaterthan the y[ upper-
value (seeFigure 12.15).Therefore,the decisionrule is

RejectHoif H > XL;

otherwise, do not rejectHs.

FTGURE12.15
Determining the
rejectionregion for
the Kruskal-Wallistest

o t yilx,
Begion of / Regionof
Nonreiection/ Rejection
Critical
Value

To illustrate the Kruskal-Wallis rank test for differencesamong c medians,

Using Statisticsscenariofrom ChapterI l, concerningthe strengthofparachutes.Ifyou
assumethat the tensilestrengthis normally distributedin all c groups,you canusethe
Wallis rank test.
The null hypothesisis that the mediantensilestrengthsof parachutesfor the four
are equal.The alternativehypothesisis that at leastone of the suppliersdiffers fromthe

H o :M r : M z : M t : M q
11,:Not all M, areequal(wherej : 1,2,3, 4).

Table12.16presentsthe data(storedin the file[![@$), alongwith the

ranks.

TABLE 12.16
TensileStrengthand
Ranksof Parachutes
Woven from Synthetic Amount Rank
Fibersfrom Four
Suppliers 18.5 4 26.3 20 20.6 8 2s.4
24.0 l3.s 2s.3 18 25.2 t7 19.9
t7.2 I 24.0 13.5 20.8 9 22.6
19.9 5.5 21.2 l0 24.7 t6 t7.5
18.0 3 24.5 l5 22.9 t2 20.4

In convertingthe 20 tensile strengthsto ranks,observein Table 12.16that the third

chutefor SupplierI has the lowesttensilestrength,l7.2.It is given a rank of l. The
value for Supplier I and the secondvalue for Supplier4 eachhave a value of 19.9.
they are tied for ranks 5 and 6, they are assignedthe rank 5.5. Finally, the first
Supplier2 is the largestvahrc,26.3,and is assigneda rank of 20.
After all the ranksare assigned"you computethe sum of the ranksfor eachgroup:

R a n ks u m s : T 1 : 2 7 T2:76.5 Tr: 62 Tq: 44.5

 RankTest:Nonparametric
12.6:Kruskal-Wallis Analysis ANOVA 495
for theOne-Way

As a checkon the rankings,recall from Equation(12.7) onpage 487 that for any integern, the
4T!' Therefore
sum of the first n consecutiveintegemi,
L

Tr+Tr+T3+fo=4\!

27+76.5+62+44.5=ry
210 = 210

UsingEquation(12.9)on page493to testthe null hypothesisof equalpopulationmedians,

r. " ,21
H =l__.t!-t,'/ l- 31n + r;
l n ( n+ l ) - i = r n iI
; 't"2 r ^ - . 2 ( 4 4 . s ) '_z3- le] t \
=I l e t f + e 6 . r 2+ r , a 2+
[(20x215 )L s s s li

= | 3) tz,o8r .l) - 63= 7.8886

\ 420I'

The statistic.I1approximatelyfollows^a chi-squaredistribution with c - I degreesof freedom.

Using a 0.05 level of significance, y,(J,the upper-tail critical value of the chi-squaredistribu-
tion with c - | :3 degreesof freedomis 7.815(seeTable12.17).Becausethe computedvalue
ofthe test statistic11: 7.8886is greaterthanthe critical value,you rejectthe null hypothesis
and concludethat not all the suppliersarethe samewith respectto mediantensilestrength.The
sameconclusionis reachedby using thep-valueapproach.In Figure 12.16,observethat the
p-value:0.0484< 0.05.

2.17 Upper-TailArea
the Degreesof
Value
Critical Freedom .995 .05
-Wallis
atthe0.05 l- 0.001 0.004 0.016 0.t02 1 . 3 2 32.706 s.024
2 0.010 0.020 0 . 0 5 1 0.103 0.211 0.575 2.773 4.605 7.378
9.348
4 0.207 0.29',70.484 0.71l 1.064 r.923 5.385 7.779 9.488 lt.t43
) 0.412 0.s54 0 . 8 3 1 1 . 1 4 5 1 . 6 1 02 . 6 7 5 6.626 9.236 il.071 12.833
Source:Extractedfrom TableE.4.

-llr(B8 " (88+ l)) r 87- F" F8. rD

-Ctlll'|rr(Br,
89.11
-OllDlsTGr2,Bs. t)
-lF(811<Bl, .RcJcatho nolllrypothrdr',
1)o nolreJ.c{tt. nullhypothelrJ
Alo
CcllSl: -lG5'F6l + {G7'Fil}+ (G3I F8}+ (@'F[
Crll ffi: -SUX|FS:E9)
496 CHAPTERTWELVE Chi-Square
TestsandNonparametric
Tests

You reject the null hypothesisand concludethat there is evidenceofa significant

enceamongthe supplierswith respectto the mediantensilestrength.At this point, you
simultaneously compareall pairsof suppliersto determinewhichonesdiffer (see
The following assumptionsare neededto usethe Kruskal-Wallisrank test:
r The c samplesare randomlyand independentlyselectedfrom their respectivepopu
r The underlyingvariableis continuous.
r The dataprovideat leasta setof ranks,both within andamongthe c samples.
. The c populationshavethe samevariability.
. The c populationshavethe sameshape.
The Kruskal-Wallisproceduremakeslessstringentassumptions than doesthe F
you ignore the last two assumptions(variability and shape),you can still use the
Wallis rank testto determinewhetherat leastone of the populationsdiffers from the other
ulations in somecharacteristic-such as centraltendency,variation,or shape.Howeveqto
the F test, you must assumethat the c samplesare from underlyingnormal populations
haveequalvariances.
When the more stringentassumptionsof the F test hold, you shoulduse the F testi
of the Kruskal-Wallistest becauseit has slightly morepowerto detectsignificantdi
among groups.However,if the assumptionsof the F test do not hold, you shoulduse
Kruskal-Wallistest.

Learningthe Basics G. Jasen,"In Picking Stocks,DartboardBeatsthePros,"

WallStreetJournal, September 27, 200l, pp. C l, C10).
12.49 What is the upper-tailcritical value from the chi-
squaredistribution if you use the Kruskal-Wallis rank test Experts Readers Darts
for comparingthe mediansin six populationsat the 0.01 +39.5 -31.0 +39.0
levelofsignificance? -l.l -20.7 +31.9
'12.50 Usingthe resultsof Problem12.49, -4.5 -45.0 +14.1
a. Statethe decisionrule for testing the null hypothesis
-8.0 -73.3 +5.4
that all six groupshaveequalpopulationmedians. a. Is there evidenceof a sisnificant differencein
b. What is your statisticaldecisionif the computedvalue medianreturn for the threecategories?(Usea =
of the teststatisticH is 13.77? b. Comparethe resultsof (a) with thoseof ProblemI
(a) on page434.
Applying the Concepts c. Which assumptionsdo you think are more
thoseof Problem11.8(a) or thoseof part (a) of
12.51 Periodically, The Wall Street Journal has con-
problem?Explain.
ducteda stock-pickingcontest.The last one was con-
ductedin March 2001. In this experiment,threedifferent 12.52 A hospitalconducteda study of the waiting
methodswere usedto selectstocksthat were expectedto its emergencyroom. The hospital has a main
perform well during the next five months.Four Wall Street along with three satellite locations.Management
professionals, consideredexpertson picking stocks,each businessobjectiveof reducingwaitingtime for
selectedone stock.Four randomlychosenreadersof The room casesthat did not require immediateattention.
Wall StreetJournal each selectedone stock. Finally, four studythis, a randomsampleof l5 emergencyroom
stockswereselectedby flinging dartsat a tablecontaining each location were selectedon a particular day,and
a list of stocks.The returnsof the selectedstocksfor waiting time (measuredfrom check-into when the
March 20, 2001, to August 31, 2001 (in percentage was calledinto the clinic area)was measured. The
return), are given in the following table and stored in the are storedin the file !sl@s
file E@E@. Note that during this period"the Dow a. At the 0.05levelof significance,is thereevidenceofa
Jones Industrial Average gained 2.4o/o(extractedfrom ferencein the medianwaitins timesin the four
 12.7: (CD-Rom Topic) Chi-SquareTest for a Varianceor StandardDeviation 497

b. Comparethe resultsof (a) with thoseof Problemll.9 C D

(a)onpage435.
l5 l6 8 5 t2
12.53 Thefollowing data(storedin the file@!@f@ rep- l8 17 7 6 l9
the nationwidehighestyield of different types of
resent t7 21 l0 l3 l8
(extractedfrom Bankrate.com,
accounts January24,2006): l9 t6 l5 ll t2
t9 19 t4 9 t7
Money 6-Month l-Yr 2.5-Yr 5-Yr 20 t7 t4 l0 l4
Market CD CD CD CD
a. At the0.05levelof significance,is thereevidenceof a dif-
4.55 4.75 4.94 4.95 5.05 ferencein the medianratingsof the five advertisements?
:f 4.50 4.70 4.90 4.91 5.05 b. Comparethe resultsof (a) with thoseof ProblemI 1.12
t- 4.40 4.69 4.85 4.85 s.02 (a) on page435.
t- 4.38 4.65 4.85 4.82 5.00 c. Which assumptions do you think are more appropriate.
ie 4.38 4.65 4.85 4.80 5.00 thoseof Problem11.12(a) or thoseof part (a) of this
rt problem?Explain.
r. At the0.05level of significance,is thereevidenceof a
differencein the median yields of the different 12.55 A sportinggoodsmanufacturing companywanted
rd accounts? to comparethe distancetraveledby golf balls produced
]S
b. Compare the resultsof (a) with thoseof ProblemI l.l I using eachof four differentdesigns.Tenballs weremanu-
le
(a)onpage435. facturedwith each designand were brought to the local
golf coursefor the club professionalto test.The order
12.54An advertisingagencyhasbeenhired by a manu-
in which the balls were hit with the sameclub from the
facturer of pensto developan advertisingcampaignfor the
first tee was randomizedso that the pro did not know
upcoming holidayseason.To preparefor this project,the

I rcsearch directordecidesto initiatea studyofthe effectof

advertisingon product perception. An experiment is
designedto compare five different advertisements.
whichtype of ball wasbeinghit. A1140ballswerehit in a
shortperiodof time, duringwhich the environmentalcon-
ditions were essentiallythe same.The results(distance
he traveledin yards)for the four designsarestoredin the file
Advertisement A greatlyundersellsthe pen'scharacteris-
tics.Advertisement -Bslightly undersellsthe pen'scharac- EEIIEEIEE:
a. At the 0.05 level of significance,is thereevidenceof a
teristics.Advertisement C slightlyoversellsthe pen'schar-
differencein the mediandistancestraveledby the golf
acteristics. AdvertisementD greatly oversellsthe pen's
ballswith differentdesigns?
characteristics.Advertisement,Eattemptsto correctly state
b. Comparethe resultsof (a) with thoseof ProblemI l.14
thepen'scharacteristics. A sampleof 30 adultrespondents,
(a) on page436.
hkenfrom a largerfocus group, is randomlyassignedto
thefive advertisements (so that thereare six respondentsto 12.56 Studentsin a businessstatisticscourseperformed
:he each). After readingthe advertisementand developinga an experimentto test the strengthof four brandsof trash
.) sense of productexpectation, all respondents unknowingly bags.One-poundweightswereplacedinto a bag, one at a
1.8 receive the samepen to evaluate.The respondentsare per- time, until the bag broke.A total of 40 bagswereused(10
mitted to testthe pen andthe plausibilityof the advertising for eachbrand).The datafil"@IEEEEgives the weight
rte, copy.Therespondents arethen askedto ratethe pen from I (in pounds)requiredto breakthe trashbags.
his to 7 on the product characteristicscalesof appearance, a. At the 0.05 level of significance,is thereevidenceof a
durability, and writing performance. The combinedscores differencein the medianstrengthof the four brandsof
rin ofthreeratings(appearance, durability,and writing perfor- trashbags?
USt mance) for the 30 respondents(stored in the file [l[Q) b. Comparethe resultsin (a) to thosein ProblemI I .10 on
ia areasfollows: page435.
lcy
To
sat
the 12.7 o (CD-ROMTopic)CHI-SOUARE
TESTFORA VARIANCE
ent
llts
OR STANDARDDEVIATION
When analyzingnumericaldata,sometimesyou needto make conclusionsabouta population
dif- varianceor standarddeviation.For further discussion,seeSection12.7onthe StudentCD-ROM
ns? thataccompanies this book.
498 ('HAPTER TWELVE Chi-SquarcTcstsand Nonparametric
Tests

Figure 12.17presentsa roadmapfor this chapter.First, you different with rcspectto the proportion of guestswhoare
used hypothesistesting for analyzingcategoricalrcsponse likely to return; and that the reasonsgiven for not returning
data from two sarnples(independentand relatcd)and from to a hotel are dependenton the hotel the guestsvisited.
more than two independentsanples. In addition, the rules T h e s e i n f e r e n c e sw i l l a l l o w T . C . R e s o r t P r o p e r t i et so
o f p r o b a b i l i t y f r o m S e c t i o n 4 . 2 w e r e e x t e n d e dt o t h e inrprovethe quality of serviceit provides.
hypothesisof independencein the -;oint responsesto two I n a d d i t i o n t o t h e c h i - s q u a r et e s t s ,y o u a l s o s t u d i e d
categoricalvariables.You applicd thesen-rethods to the sur- t w o n o n p a r a m e t r i c t e s t s .Y o u u s c d t h e W i l c o x o n r a n k
veys conductedby T.C. Resort Properties. You concluded sum test when the assumptionsof the t test for two inde-
that a greaterproportion of gucstsare willing to rcturn to p e n d e n t s a r n p l e sw e r e v i o l a t c d a n d t h e K r u s k a l - W a l l i s
t h e B e a c h c o n , b eH r o t e l t h a n t o t h e W i n d s u r f e r :t h a t t h e tcst when the assumptionsof the one-way ANOVA were
Golden Palrn, Palm Royale,and Palm Princesshotels are violated.

Nonparametric Categorical Test for a

Tests Data Procedures Varianceor
StandardDeviation

Wilcoxon Kruskal-Wallis
RankSum Test Test C o n t ni g e n c y
Tables

X2Testsof Independence Types of Testsfor Prooortions

Tests

2x2 2xc rxc

Tables Tables Tables 1 N u m b e ro f 3 or More
Samples
Zfestfor a
Proportion 12 Test for
(seeSection9.5) ",|-,'2--''c

Marascuilo
Procedure"*
Independent
No Samples

McNemar
Test
Yes

ZTest for
,(' lest lor
(see Section10.3) "1- "2

FfGURE12.17 Roadmapof Chapter12

 ChapterReviewProblems 499

are Testfor the Difference Between Two Proportions McNemarTest

ning (.fo-.f"\' B_C
ited. y2= t (r2.r) Z_ (r2.6)
.Ll { 1B+C
sto a// cells r e

Checking the Rankings

died the Estimated Overall Proportion
rank Xr+X, X n ( n+ l )
(r2.2) Ttt t2 = (r2.7')
nde- r
n1*n2 n
2
rallis
wefe Large-Sample Wilcoxon Rank Sum Test
the Estimated Overall Proportion
c Groups n{n+I)
tTt -
z (12.8)
= _ X , t+ X 2 + . . . + X r . _ X (12.3) nflz(n + l)
\*n2+"'+nc n
t2
Rangefor the Marascuilo Procedure
Kruskal-Wallis Rank Test for Differences
pj ( l - p 1 ) , n i , ( l - p i , ) Among c Medians
= ffi
range -- (r2.4)
[ ..
njnj'
" ,2f
H =l- 12-iIl-\n+tt (r2.e\
+ t) ni
the ExpectedFrequency ln(n 7o )
- Row total x Column total
JE (12.s)
n

(12)distribution 466 expectedfrequency(f) 464 observedfrequency(f) 464

(12)testof independence Kruskal-Wallisrank test 493 2 x c contingencytable 471
Marascuiloprocedure 474 2x2 conlingencytable462
table 462 McNemartest 483 Wilcoxon rank sum test 487

Your Understanding 12.61 What is a nonparametricprocedure?

Underwhatconditionsshouldyou usethe 1r testto
whetherthere is a differencebetweenthe pro-
of trvoindependentpopulations?
Underwhatconditionsshouldyou usethe 12 testto
whetherthere is a differencebetweenthe pro-
of morethantwo independentpopulations?
Underwhatconditionsshouldyou usethe 12 testof
Under what conditions should you use the
test?
12,62 Underwhat conditionsshouldvou usetheWilcoxon
rank sumtest?
12.63 Under what conditionsshouldyou usethe Kruskal-
Wallisrank test?
Applying the Concepts
12.64 Undergraduatestudentsat Miami University in
Oxford, Ohio, were surveyedin order to evaluatethe effect
of genderand price on purchasinga pizza fromPizzaHut.
Studentswere told to supposethat they were planning on
500 TWELVEChi-Square
CHAPTER Tests
andNonparametric
Tests

having a large two-topping pizza deliveredto their resi- (1) Do you believe that quality is a profession?
dencethat evening.The studentshad to decidebetween
orderingfromPizza Hut at a reducedprice of $8.49 (the Manufacturing Service Health
regularprice for a largetwo-toppingpizzafromthe Oxford
Yes 108 88 49
PizzaHtfi at this time was $11.49)and orderinga pizza
No 72 r32 50
from a differentpizzeia. The resultsfrom this questionare
summarizedin the following contingencytable: (2) Doesyour company measurethe impad of pt
improvement initiatives?
PIZZERIA
Manufacturing Service Health
GENDER PizzaHut Other Total
4 13 l7 Yes 132 t29 54
Female
l8 No 48 9t 46
Male 6 12
Total 10 2s 35 Source:Adaptedfrom G. Weiler "Ilhat Do CEOs ThinkAbout
Quality? " Quality Progress,May 2004, 37(5), pp. 52-56.
The surveyalso evaluatedpurchasedecisionsat other a. Is there a significant differenceamongthe threei
prices.Theseresultsare summarizedin the following con- tries with respectto the proportion of top
tingencytable: who believequality is a profession?(Usea:0.05.)
b. If appropriate,apply the Marascuiloprocedureto (
usingcr:0.05.
PRICE
c. Is there a significant differenceamong the di
PIZZERIA $8.49 $11.49 $14.49 Total industrieswith respectto the proportionof
PizzaHut l0 5 2 t7 that measurethe impact of processimprovementiniti
Other 25 23 27 75 tives?(Usecr: 0.05.)
Total 35 28 29 92 d. If appropriate,apply the Marascuiloprocedureto
usingo: 0.05.

a. Using a 0.05 level of significanceand usingthe datain 12.66 A company is considering an organizat
the first contingencytable,is there evidenceofa signif- changeby adopting the use of self-managedwork
icant relationshipbetweena student'sgenderand his or To assessthe attitudesof employeesof the company
her pizzeriaselection? this change,a sampleof 400 employeesis selected
b. What is your answerto (a) if nine of the male students askedwhether they favor the institution of self.
selectedPizzaHrfi and nine selectedother? work teams in the organization.Three responsesare
c. Using a 0.05 level of significanceand usingthe datain mitted: favor,neutral,or oppose.The resultsof the
the secondcontingencytable, is thereevidenceofa dif- cross-classifiedby type ofjob and attitudetoward
ferenceinpizzeia selectionbasedon price? managedwork teams,are summarizedas follows:
d. Determinethep-value in (c) and interpretits meaning.
e. If appropriate,use the Marascuiloprocedureand cr : SELF-MANAGEDWORKTEAMS
0.05 to determinewhich prices are different in terms of TYPEOFJOB Favor Neutral Oppose
pizzeia preference.
Hourlyworker 108 46 7l
12.65 A2004 study by the American Societyfor Quality Supervisor 18 12 30
investigatedexecutives'views toward quality. Top execu- Middlemanagement 35 14 26
tives were askedwhetherthey view quality as a profession Uppermanagement 24 7 9
in the way law, medicine,engineering,and accountingare Total 185 79 136
viewed,or whetherthey seepracticing quality more as the
ability to understandand use a variety oftools and tech- a. At the 0.05 level of significance,is thereevidence
niquesto producea result.Table(l) providesthe responses relationshipbetweenattitudetowardself-managed
to this question,cross-classifiedby the type of industry teamsandtype ofjob?
with which the executiveis involved.A secondquestion
askedwhetherthe executives'companiesactually measure The survey also askedrespondentsabouttheir
the impact of processimprovementinitiatives designedto towardinstitutinga policy wherebyan employeecould
raisethe quality oftheir productsor services.Table(2) pro- one additional vacation day per month without pay.
vides the resultsto this question. by typeofjob, areshownon page
results,cross-classified
 ('hapterRcvicwProblems 501

VACATIONTIMEWITHOUTPAY SALES
APPROACH
TYPE
OFJOB Favor Neutral 0ppose Total Personal
-are
Hourfyworker t 35 23
ACTION VideotapeSalesCall Telephone
Total
67 225
Supervisor 39 7 14 60 Purchase l9 27 t4 60
M i d d l em a n a g e m e n t 47 6 22 75 Don't purchase g6
_81 73 240
Uppermanagement 26 6 g 40 Total 100
)ce5s 100 100 300
Total U7 A I lt 400
c. At the 0.05 level of stgnificance,is there evidenceof a
lare b. At the 0.05 levcl of significance,is there evidenceof a difference in the proportion of tapes purchasedon the
relationshipbetweenattitudetoward vacationtirne with- basisofthe salesstrategyused?
outpay and type ofjob'/ d. If appropriatc,usethe Marascuiloprocedureand u:0.05
to deterrninewhich salesapproachesare clifferent.
12,67 A companythat producesanclmarketsvideotaped e . O n t h e b a s i so f t h e r e s u l t so f ( c ) a n d ( d ) . w h i c h s a l e s
continuing education programs for the financial industry approachdo you think a representative shoulduse in the
hastraditionallyrrailed sampletapesthat containpreviews future'?Explain the rationalefbr your decision.
rdus- of theprograrnsto prospectivecustomers.Custornersthen
tives agree to purchasethe program tapes or return the sar.nple 12.68 A markct rescarcherinvestigatedconsumerprefer-
) t a p e sA. g r o u p o f s a l e s r e p r e s e n t a t i v e s t L r d i e dh o w t o encesfor Coca-Colaand Pepsibefore a tastetest and after
r (a), increase sales and found that many prospective custorners a t a s t e t e s t . T h e f o l l o w i n g t a b l e s u m m a r i z e st h e r e s u l t s
believed it was difficult to tell from a sample tape alone from a sar.nple of 200 respondents:
)rent whether the educationalprogramswould meet their needs.
tnies Thesalesrepresentatives performed an experimentto test PREFERENCE
AFTER
TASTE
TEST
titia- whether sendingthe completeprogram tapesfor review by PREFERENCE
BEFORE
c u s t o m e rws o u l d i n c r e a s es a l e s .T h e y s e l e c t e d8 0 c u s - TASTE
TEST Coca-Cola Pepsi Total
,(c), tomersfrom the rnailing list and randomly assigned40 to
Coca-Cola 104 6 ltO
receive the sampletapesand 40 to receivethe full-program
Pepsi t4 76 90
onal tapes for review.They then determinedthe nurnberof tapes
Total l 18 82 200
ams. thatwerepurchasedand returnedin eachgroup.The results
vard oftheexperimentare as follows:
a . I s t h e r e e v i d e n c eo f a d i f f e r e n c ei n t h e p r o p o r t i o n o f
and
respondentswho prefer Coca-Colabefore and after the
rged
TYPEOFVIDEOTAPE
RECEIVED tastetests?(Use cr : 0. 10.)
per-
Sample b. Compute the p-value and interpretits meaning.
vey,
c. Show how the following table was derived from the
;elf- Purchased 6 t4 20 table above:
Returned 34 zo 60
Iotal 40 40 80
ts SOFTDRINK
tal PREFERENCE Coca-Cola Pepsi
a.At the 0.05 level of significance,is there evidenceof a
Beforetaste test l l0 90 200
* differencein the proportion of tapes purchasedon the
t0 After taste test 118 82 200
basisof the type of tape sentto the custorner?
t5 Total 228 172 400
b .O n t h e b a s i s o f t h e r e s u l t so f ( a ) , w h i c h t a p e d o y o u
a
)0
thinka representative should sendin the future? Explain
d. Using the secondtable, is there evidenceof a difference
therationalefor your decision.
The sales representativea s lso wanted to determine in preferencefor Coca-Cola before and after the taste
rfa whrchof three initial salesapproachesresult in the most t e s t ' (?U s eo : 0 . 0 5 . )
ork sales: ( I ) a video sales-informationtape rnailedto prospec- e. Determinethe p-value and interpretits meaning.
tivecustomers,(2) a personalsalescall to prospectivecus- f. Explainthe differencein the resulrsof (a) and (d). Which
tomers, and (3) a telephonecall to prospectivecustomers. method of analyzingthe data shouldyou use?Why,?
Jes A r a n d o r n s a m p l e o f 3 0 0 p r o s p e c t i v ec u s t o m e r s w a s 12.69 A market researcherwas interestedin studyingthe
*e selected, and 100 were randomly assignedto each of the effect of advertisementsol1 brand preferenceof new car
'he
threesalesapproaches.The results,in terms of purchases buyers.Prospectivepurchasersofnew cars were first asked
ll. ofthefull-programtapes,are as follows: whether they preferred Toyota or GM and then watched
502 Tests
TWELVEChi-Square
CHAPTER andNonparametric
Tests

video advertisementsof comparablemodels of the two

COST-CUTTING
manufacturers.After viewing the ads,the prospectivecus-
tomersagain indicatedtheir preferences.The resultsare OUTCOME Yes No
summarizedin the following table: lmproved environmental
performance 77 52
AFTER
PREFERENCE ADS Environmentalperformance
PREFERENCE not improved 91 129
BEFOREADS Toyota GM Total Total 168 l8l
Toyota 97 3 100 COST-CUTTING
GM ll 89 100 OUTCOME Yes No
Total 108 92 200
lmprovedprofitability 70 68
Profitabilitynot improved 98 113
a. Is there evidenceof a differencein the proportion of Total 168 l8l
respondentswho preferToyotabeforeand after viewing
theads?(Usea:0.05.) COST-CUTTING
b. Computethep-valueandinterpretits meaning. OUTCOME Yes No
c. Show how the followine table was derived from the
lmprovedmorale 67 55
tableabove.
Moralenot improved lot 126
Total 168 l8l
MANUFACTURER
PREFERENCE Toyota GM Total Source: Extractedfrom M. Hanna, W Newman, and P Johnson,
"Linking Operational and Environmental ImprovementThru
Beforead 100 r00 200 Employee Involvement," International Journal of Operationsand
After ad 108 92 200 Production Management, 2000, 20, pp. 148-165.
Total 208 t92 400 a. At the 0.05 level of significance,determrne
there is evidenceof a significantrelationship
d. Using the secondtable,is thereevidenceof a difference the presenceof environmentalgoals and the type
in preferencefor Toyotabefore and after viewing the manufacturing process.
ads?(Usecr:0.05.) b. Determinethep-value in (a) and interpretits
e. Determinethep-value and interpretits meaning. c. At the 0.05 level of significance,is there evidence
f. Explain the differencein the resultsof (a) and(d). Which differencein improved environmentalperformance
methodof analyzingthe datashouldyou use?Why? teamswith a specifiedgoal of cutting costs?
',2.7O Researchers studiedthe goalsandoutcomesof 349 d. Determinethep-value in (c) and interpretits
work teams from various manufacturingcompaniesin e . At the 0.05 level of significance,is thereevidence
Ohio. In the first table,teamsare categoizedas to whether differencein improvedprofitability for teams
they had specified environmentalimprovementsas a goal specifiedgoal ofcutting costs?
and also accordingto one of four types of manufacturing f. Determinethep-value in (e) and interpretits
processesthat best describedtheir workplace.The follow- g. At the 0.05 level of significance,is thereevidence
ing three tables indicate different outcomesthe teams difference in improved morale for teamswith a
accomplishedbasedon whetherthe team had specified fied goal ofcutting costs?
costcuttingasoneofthe teamgoals. h. Determinethep-value in (g) and interpretits
Team Project
ENVIRONMENTAL
GOAL The data file E@[@@ containsinformation
TYPEOFMANUFACTURING ing nine variablesfrom a sampleof 838 mutual funds.
PROCESS Yes No Total variablesare:
Category-Type of stockscomprising the mutual
Jobshopor batch 2 42 44
(small cap,mid cap,or largecap)
Repetitivebatch 4 57 6l
Objective-Objective of stockscomprisingthe
Discreteprocess 15 147 r62 fund (growth or value)
Continuous process t7 65 82 Assets-In millions of dollars
Total 38 3ll 349
Fees-Sales charges(no or yes)
 ManagingtheSpringt,ille
Heruld 503

Expense ratio-Ratio of expensesto net assetsin For these data, construct contingency tables, using gender,
L
percentage major, plans to go to graduateschool, and employment sta-
!- 2005return-Twelve-monthreturnin 2005 tus. (You need to constructsix tables,taking two variables
Three-yearreturn-Annualized return,2003-2005 at a time.) Analyzethe dataat the 0.05 levelof significance
Five-yearreturn-Annualized return,200I -2005 to determine whether any significant relationships exist
Risk-Risk-of-lossfactor of the mutual fund (low. among these variables.
I average,or high)
) 12,71a. Constructa 2 x 2 contingencytable,using fees 12.76 Problem 1.27 on page 15 describesa survey of 50
astherow variableandobjectiveasthe columnvariable. undergraduatestudents(see the file @E@E@IS&)
L a. Select a sample of 50 undergraduatestudentsat your
b.At the0.05level of significance,is thereevidenceof a
J significantrelationshipbetweenthe objectiveof a school and conducta similar survey for thosestudents.
mutualfundandwhetherthereis a fee? b. For the data collectedin (a), repeatProblem 12.75.
8
12.72a. Constructa 2 x 3 contingencytable,using fees c. Compare the results of (b) to those of Problem 12.75.
I astherow variableandrisk asthe columnvariable.
9
b.At the0.05level of significance,is thereevidenceof a 12.77 Problem 1.28 on page l5 describesa survey of 50
'L relationshipbetweenthe perceivedrisk of a
significant MBA students (see the file [[!!@l!ls). For these data,
J mutualfund and whetherthere is a fee? construct contingency tables, using gender, undergraduate
12,73a. Constructa 3 x 2 contingencytable,using risk majoq graduate major, and employment status. (You need
2 to construct six tables, taking two variables at a time.)
astherow variableandobjectiveasthe columnvariable.
7 b.At the0.05level of significance,is thereevidenceof a Analyze the data at the 0.05 level of significance to deter-
.9
significantrelationshipbetweenthe objective of a mine whether any significant relationships exist among
mutualfund andits perceivedrisk? thesevariables.
12,74a. Constructa 3 x 3 contingencytable,using risk
12.78 Problem 1.28 on page l5 describesa survey of 50
astherow variableandcategoryasthe columnvariable.
MBA students (see the file [[[@!s[E)
b.At the0.05level of significance,is thereevidenceof a
a. Select a sample of 50 graduatestudentsin your MBA
her significantrelationshipbetweenthe categoryof a
program and conduct a similar survey for those students.
een mutualfund andits perceivedrisk?
b. For the data collected in (a), repeat Problem 12.77.
rof Student Survey Database c. Comparethe resultsof (b) to thoseof Problem 12.77.
12.75Probleml.2l on pagel5 describesa surveyof 50
o'
'D
students(seethe file EEEEtrEIEE).
undergraduate
rfa
for

'rDg' ^

rfa
lha
&
pfanaging the Springville Herald
rg.
ofa "l
Phase
eci-
Rwiewingthe resultsof its research,the marketing department 3. Substantial discount for the newspaper. Subscribers
concluded that a segmentof Springville householdsmight be would pay $3.00 per week for the newspaperduring the
rg.
interestedin a discountedtrial home subscriptiontothe Herald. 90-day trial period.
Theteamdecidedto test various discountsbefore determining 4. Discount restaurantcard. Subscriberswould be given a
ard- flretypeof discountto offer during the trial period. It decidedto card providing a discountof l5oh at selectedrestaurants
The conduct an experiment using three types of discounts plus a in Springville during the trial period.
planthatoffered no discount during the trial period:
und l. No discount for the newspaper.Subscriberswould pay Each participant in the experiment was randomly
$4.50per week for the newspaperduring the 90-day trial assignedto a discount plan. A random sampleof 100 sub-
lual period. scribers to each plan during the trial period was tracked to
2,Moderate discount for the newspaper. Subscribers determine how many would continue to subscribeto the
wouldpay $4.00 per week for the newspaperduring the Herald after the trial period. Table SH 12.I summarizesthe
90-davtrial oeriod. results.
504 andNonparametricTests
CHAPTERTWELVEChi-SquareTests

TABLE 5H1 2.1 Number of SubscribersWho Continue SubscriptionsAfter Trial Period with Four Discount

DISCOUNT
PLANS
CONTINUE
SUBSCRIPTIONS No Moderate Substantial Restaurant
AFTER
TRIALPERIOD Discount Discount Discount Card
Yes 34 37 38 6l
No 66 63 62 39
Total 100 100 100 100

EXERCISE
SUNDAY
PURCHASE
BEHAVIOR
SHl2.l Analyzethe results of the experiment.Write a
reportto the teamthat includesyour recommenda- INTEREST No More
tion for which discountplan to use.Be preparedto
INTRIAL Every 2-3 Times/ThanOnce/
SUBSCRIPTION
Sunday Month Month
discussthe limitations and assumptionsof the
experiment. Yes 35 l0 I
No 103 44 23
DO NOT CONTINUE LINTIL THE PHASE 1 EXERCISE Total t38 54 24
HAS BEEN COMPLETED.
INTEREST
INTRIAI
Phase2 SUBSCRIPTION
The marketingdepartmentteamdiscussedthe resultsof the
WHERE
surveypresentedin Chapter8, on pages320-32l.The
PURCHASED Yes No
team realizedthat the evaluationof individual questions
was providing only limited information. In order to further Conveniencestore t2 62
understandthe marketfor home-deliverysubscriptions,the Newsstand/candystore l5 80
datawere organizedin the following cross-classification Vendingmachine l0 ll
tables: Supermarket 5 8
Otherlocations 4 9
READOTHER
NEWSPAPER Total 46 170
HOME
DELIVERY Yes No Total MONDAY-SATURDAY
PURCHASE
BEHAVIOR
Yes 6l 75 136
No 77 139 216 SUNDAY
Total 138 214 352 PURCHASE Every Most Occasionally
BEHAVIOR Day Days or Never
RESTAURANT
CARD EverySunday 55 65 l8
HOME 2-3 times/month 19 23 t2
DELIVERY Yes No Total Once/month 47 l3
Total 78 95 43
Yes 26 ll0 136
No 40 r76 216
EXERCISE
Total 66 286 352
5H12.2 Analyze the results of the cross-classifi
MONDAY-SATURDAY tables.Write a report for the marketing
PURCHASE
BEHAVIOR ment team and discussthe marketingimpli
of the resultsfor the SpringvilleHerald.
INTEREST
INTRIAL Every Most Occasionally
SUBSCRIPTION Day Days or Never Total
Yes 29 l4 J 46
No 49 8l 40 170
Total 78 95 43 216
 Rcferences505

Web Case
al Applltyour knou,ledge of'testing./br the clffirenc'e betv'een file in the Web Case folder on the StudentCD-ROM), and
0 tu'oproportions in this Weh Case, n'hich ertends the T.C. examinethe survey data.Then answerthe following:
ResortPropertie,s Using Statistic'.;sc'enario of'this chapter.
I A s T . C . R e s o r t P r o p e r t i e ss e e k st o i m p r o v e i t s c u s -
l. Are the claims made by Sunlow valid'l
r0
tomerservice,the company faces new competition fronl 2. What analysesof the survey data would lead to a more
SunLowResorts.SunLow l.rasrecer.rtly openedresorthotels favorableimpressionaboutT.C. ResortProperties?
o n t h e i s l a n d sw h e r e T . C . R e s o r t P r o p e r t i e sh a s i t s f i v e
3. Perforrnone of the analysesidentified in your answerto
hotels.SunLow is currently advertisingthat a randornsur-
step2.
vey of 300 customersrevealedthat about 600l percentof
thecustomerspreferred its "Concierge Class" travel reward 4. Review the data about the T.C. ResortsPropertiescus-
tal programover the T.C. Resorts "TCPass Plus" program. tomerspresentedin this chapter.Are thereany other fac-
Visit the SunLow Web site, www.prenhall.com/ tors that you might include in a future survey of travel
+6 S p r i n g v i l l e / S u n L o w H o m e . h t m( o r o p e n t h e W e b p a g e rewardprograms'?Explain.
70
16

l. Conover, W. J., Practical Nonparantetric' Stutistic's, 6 . M a r a s c u i l o , L . A . , " L a r g e - S a r n p l eM u l t i p l e C o m -

3rd ed. (New York: Wiley, 2000). parisons,"Psttc'hologicalBulletin 65 ( I 966): 280-290.
rtal
2. Daniel, W. W., Appliecl Nonpurumetric Stutistics, 7. Mirrascuilo,L. A., and M. McSweeney,lVonparantetric
1A
2 n d e d . ( B o s t o n :P W S K e n t , 1 9 9 0 ) . antl Distribution-Free Methods.lot' the Social Sc'ienc'e.s
95 3. Dixon, W. J., and F. J. Massey, Jr., Intrcdut'tion to ( M o n t e r e yC, A: Brooks/Cole1 , 977).
2l Statistic:ul Anulttsis,4th ed. (New York: McGraw-Hill. 8. Mic'rcsr1fiExc'el2007 (Redrnond.WA: Microsoft Corp.,
l3 i 9 8 3) . 2007).
13 4. Hollander, M., and D. A. Wolfe, lVonltut'trntetrit 9. Winer, B. J.,D. R. Brown, and K. M. Michels,Stutistit'ttl
t6 Statistir:alMethod.s2nd ed. (NewYork: Wiley, 1999). Principles in Erperimentul Design,3rd ed. (New York:
5 . L e w o n t i n , R . C . , a n d J . F e l s e n s t e i n", R o b u s t n e s so f McGraw-Hill1 . 989t.
Homogeneity Tests in 2 x n Tables," Biontetrics 2l
( M a r c h1 9 6 5 ) :l 9 - 3 3 .

tal
l8
4
,.1
6

ton
rrt-
)ns
 506 EXCELcoMPANIoN to chapter12

E12.1 USINGTHE CHI.SOUART
TESTFORTHE DIFFERENCE
BETWEENTWO PROPORTIONS
You conducta chi-squaretest for the differencebetween
two proportionsby eitherselectingthe PHStat2Chi-Square
Testfor Differencesin Two Proportionsprocedureor by
making entriesin the![ft![[f[! workbook.
Using PHStat2 Chi-SquareTest
for Differences in Two Proportions
SelectPHStat ) Two-SampleTests) Chi-SquareTest
for Differencesin Two Proportions. In the procedure's
dialogbox (shownbelow),enterthe Level of Significance,
entera title asthe Title, andclick OK.
\
Before you enter contingency table data, many
#DIV/0!. This is not anerror.
cellsdisplaythe message
UsingChi-Square.xls
Opento the ChiSquare2Pworksheetof the
workbook.This worksheet(seeFigure 12.3on page
usesthe function CHIINV(/evel of signfficance,
of freedom) to computethe critical value and the functi
CHIDIST(Xz test statistic, degreesof freedom)to
pute the p-valuefor the Section12.1hotel guestsati
tion example.To adaptthis worksheetto other
enterthe problem'scontingencytabledatainto therows
through 7 Observed Frequenciesarea, edit the title in
Al, and changethe level of significancein cell Bl8,i
necessary.
Figure El2.l shows the cell formulas for rows
\1 -qq( sttqNu is Fiqute 12.3. Formulasin
\Krqlr:s-(\
Bl1, A12, Al3, A14, B12, andC12 displaytheronr
column labels enteredin the ObservedFrequencies
)owo!t,!!,):,yM

fttne.ttba te> eryle* *

-Wz.aZZAAr,rzatzynrtrk_
themessage
#DM}!. This is not an

K\rSNs\N\)\.iNsulsrsr
\s.u t,ss\ur\ u\eS u'*t r'='s\:N\Nsu\x
qnere\ohtiheets.xls PHStat2t, *
"-u, or bvmakingentries
in
rhefilNFFFTnE*"rff::l:""edure

Using PHStat2 McNemar Test

SelectPHStat -) fyo_Sumple
Tests) McNemarTesf.In
theprocedureb dialogbox (see,"p
of SignificanJe,click a test"fp"g.'50g;, enterthe
!ev$ option, enrera title as
the Title, and click OK.

USINGTHECHI.SOUARE
FORTHEDIFFERENCES
TEST
AMONGMORETHAN
TWOPROPORTIONS
a chi-squaretest for the differences among
twoproportions
by eitherselectingthe PHStat2
Testprocedure or by makingentriesin the
workbook.
PHStat2Chi-SquareTest
PHStat) Multiple-SampleTests) Chi-Square
theprocedure'sdialogbox (shownbelow),enterthe
, enter2 asthe Number of Rows,and
Numberof Columns. Enter a title as the Title
OK. If you want to selectthe Marascuiloproce-
MarascuiloProcedurebeforeclickins OK.
createsa worksheetin which vou enter vour
tabledata,suchasTable12.6on page477,
Frequencies areathat beginsin row 4. (You
entercustomrow and column labels for your
youentercontingencytabledata,manywork-
displaythe message#DIV/O!.This is not an
Worksheets.xls
Chi-Square
@workbook to the work-
containsthe appropriate 2 x c observedfre-
hblefor your problem.For example,for the guest
iondatain Table 12.6on page 471 that requiresa
table,open to the ChiSquare2x3 worksheet.
with empty observedfrequenciestablesdis-
message #DIV/01in many cells.This is not an
E12.4: Using the McNemarTest )U /
error, and thesemessages disappearwhen you enteryour
contingency tabledata.
A112 x c worksheetscontainformulas similar to those
in the ChiSquare2P worksheetdiscussedin SectionEl2.l.
All worksheets havetheir level of significancesetto 0.05,
but you canchangethis value.The@
workbookincludesthe ChiSquare2x3Formulas worksheet,
which allows you to examine the formulas of the
ChiSquare2x3worksheetin formatted,formulas view.You
shouldnote that the formula in cell A30 verifies whether
all expectedfrequencies areat leastl, an assumptionofthe
Chi-Squaretest.
Usingthe MarascuiloWorksheets
Each2 x c chi squareworksheetis linked to a companion
Marascuiloworksheetin the@work-
book. Marascuiloworksheetnamesechothe chi-square
worksheetto which they arelinke4 so that Marascuilo2x3
is linkedto ChiSquare2x3.(TheMarascuilo2x3worksheet
is shownin Figure 12.7onpage475.)
The Marascuilo2x3Formulas worksheetallowsyou
to examinethe formulasof the Marascuilo2x3worksheet
in formatted,formulasview. If you examinethis worksheet,
you seethat the formulasfor the level of significance,the
squareroot of the critical value,the sampleproportions,
and the critical rangeall use one or more valuesfrom the
ChiSquare2x3 worksheet.
All Marascuiloworksheetscomparethe absolutediffer-
encesand critical rangevaluesfor eachpair of groupsand
displayeitherSignificantor Not Significantin columnD.
E12.3 USINGTHECHI.SOUARE
TEST
OF INDEPENDENCE
Adapt the instructionsof the previous sectionto the
chi-squaretest of independence. If you usePHStat2,enter
your numberof rowsasthe Number of Rows.If you usethe
@workbook, opento eitherthe chi-
squareworksheets for 3 x 4, 4 x 3, 7 x 3, or 8 x 3, or open
oneof the 2 x c worksheetsmentionedin Section812.2.
E12.4 USINGTHE McNEMAR TEST
You conduct a McNemar test by either selectingthe
PHStat2McNemarTestprocedureor by makingentriesin
theEEIE@ workbook.
Using PHStat2McNemar Test
SelectPHStat ) Tivo-SampleTests) McNemar Test.In
the procedure's dialogbox (seetop ofpage 508),enterthe
Level of Significance,click a test option, entera title as
the Title, andclick OK.
508 EXCELcoMPANIoN to chaoter12

lf you want the McNemar_All worksheetto show

SS6
Levd d SErSlctrf,a;
T€* O*lrns
. ri rwo-rdrtc
: {. tw'TdlTs*
r- Lourer-Teal
test
A*pJt Opthns
Tfthr f
iffi:;
ox il carrel i
-li
PHStat2createsa worksheetin which you enter the
observedfrequencies,suchas Table12.13on page 484,in
the ObservedFrequencies areathat beginsin row 3. (You
can also enter custom row and column labels for your
data.)Beforeyou enterdata,manyworksheetcells display
the message#DIV/0!. This is not an error.
Using McNemar.xls
You open and use either the McNemar_TT or the
McNemar_All worksheets of theEEEftf!.orkbook
use the McNemar test. These worksheetsuse the
NORMSINV(P<X) function to determinethe lower and
uppercritical valuesand use the NORMSDIST(Z value)
functionto computethep-valuesfrom the Z valuecalcu-
lated in cell Bl6. To understandhow messages get dis-
playedin theseworksheets,read 'About the IF Function"
on page364.
The McNemar_TT worksheet(seeFigure 12.12on
page485) usesthe two-tail test for the Section12.4 con-
sumerpreferenceexample.The McNemar_All worksheet
also includesthe one-tailtests(theseadditionsare shown
in Figure812.2).To adapttheseworksheetsto otherprob-
lems,changethe observedfrequencytabledataand labels
in rows4 through7 and (if necessary) the level of signifi-
cancein cell B1 1.
oneof the one-tailtests,first makea copyof that
(seethe Excel Companionto Chapterl). For a lower
test-onlyworksheet,selectand deleterows 29 through
and then selectand deleterows l8 through23. For
upper-tail-test-onlyworksheet,selectand deleterows
through28.
E12.5 USINGTHEWILCOXON
RANKSUMTEST
You conducta Wilcoxonrank sum test by eitherse
the PHStat2Wilcoxon Rank Sum Test orocedureor
makingentriesin theflftll!fifr workbook.ThePH
procedureusesunsummarized, unstackeddata,while
workbook uses summarizeddata. (See "Counting
SummingRanks" on page 509 if you haveunsummari
unstackeddata and you wish to use the workbook.)
Using PHStat2Wilcoxon RankSumTest
Open to the worksheetthat containsthe unsummarr
unstacked data for the two independent populations. Se
PHStat 9 Two-SampleTests ) Wilcoxon Rank
Test.In the procedure'sdialogbox (shownbelow),enter
Level of Significance and the cell ranges for the
I SampleCell Range and the Population2 Sample
Range.Click First cellsin both rangescontainlabel,
to a testoption,entera title asthe Title, andclick OK.
D*i
Lardofssrfic*a, [618"*
Poglrtlm t Sarplc Cel Rangc:
FEfriSm ? Sarpb Cel Ranger
lf Fflt csls in both rarqnscc**n labd
Tcd O$irns
f T$m-TdT€6t
{'1ppcr-TdTest
j-
Ld/rtr-Td Tcat
O*pnt Options
Tftb: I

=1{ORMSTNV(B11}
=1{ORMSDTST{8161
=lF{826< 81l, "Rejeclthe null hypothesis", PHStatcreatesa worksheetsimilar to the Fisure12.
"Do nql rejeci the null hypolhesis'J
worksheeton page490.However,PHStat2usesthe
=NORMS|l{V(t -8111 COUNTIF and SUMIF in formulasin cells87, 88, B
=1 - ilORMSDt5T{816}
=lF(B3l < Bll, "Rejedrhe trull hypothesis", andBl I to computethe samplesizeandsumof theranks
"Do not rejecl the null hypothesis"!
eachpopulation.To learn more aboutthesefunctions,
FIGUREE12.2 McNemar All worksheetone-tailtests "Countingand SummingRanks,"laterin this section.
 E12.6:UsinstheKruskal-Wallis
RankTest 509

il only :COUNTIF(cell range of all population labels,"popula-

UsingWilcoxon.xls
ksheet tion I name") to countthe samplesizeof the populationI
:r-tail- Youopen and use either the Wilcoxon_TT or the sampleand the formula :SUMIF(cell range of all popula-
Wilcoxon_All worksheetsof the [[@l![[! workbook to
ryh 32 tion labels, " population 7 name", cell range of all sorted
For an usetheWilcoxonrank sum test.Theseworksheets usethe values)to sum the ranksof the populationI sample.(The
rws 18 NORMSINV(P<X)function to determinethe lower and populationI namemustappearin a setof doublequotation
upper criticalvaluesand use the NORMSDIST(Z value) marks.)Createanotherpair of formulasand usethe name
function to computethe p-valuesfrom the Z valuecalcu- of the secondpopulationas the value to be matchedto
latedin cell Bl8. To understandhow messages get dis- countthe samplesizeandsumtheranksof thepopulation2
played in theseworksheets, read'About the IF Function" sample.
onpage364. For example,the formulas :COUNTIF(AI:A21,
TheWilcoxon_TTworksheet(seeFigure 12.14on
rlecting " EndAisle" ) and:SUMIF(A 1:A21, " EndAisle",Cl:C2l)
page490)usesthe two{ail test for the Section12.5BLK would computethe samplesizeandthe sum of ranksfor the
:orby
)HStat2 colasalesexample.The Wilcoxon_All worksheetalso BLK cola end-aislesalesif placedin emptycells of the
includes the one-tailtests(theseadditionsare shownin ColaSortedStackedworksheetof the [![!f!! workbook.
hile the
Figure E12.3).To adapttheseworksheetsto otherprob- The formulas :COUNTIF(AI:A21, "Norma;,) and
ng and
lems,change thetitle in cell A I and(if necessary)
the level :SUMIF(AI:A21, "Normal", Cl:C2l) woulddo thesame
narizeL
ofsignificance, samplesizes,and rank sum valuesin the thingsfor thenormaldisplaysample.
cells84. B1. 88. B 10.and B 11.
tinted
'est
narized,
E'12.5 USING THE KRUSKAL.WALLIS
s. Select
RANK TEST
-r{oRrsrxv(84}
rk Sum -floRIsDlsT{8t8} You conducta Kruskal-Wallisrank testby eitherselecting
-lF{828 < B,l, 'R6Jod rhe null hypoihois'.
enterthe the PHStat2Kruskal-WallisRank Testprocedureor by
"0o nol rojecl ths null hypolhetb')
pulation making entriesin the @ *ork-
-ltoRtlSltlV{l '84}
ple Cell -l - xORISDIST{818} book. The PHStat2 procedure uses unsummarized,
'lF{833 < 84. 'Rojecl th. null hypothedr',
rel. click -0o unstackeddata,while the workbookusessummarized data.
nol rojscl lhe null hypolh6ls'J

El2.3 Wilcoxonone-tailtests
FIGURE

Using PHStat2 Kruskal-WallisRank Test

If youwantthe Wilcoxon_Allworksheetto showonly
oneoftheone-tailtests,first makea copyof thatworksheet
(seetheExcelCompanionto Chapter1). For a lower-tail-
te$-onlyworksheet,selectand deleterows 3l through34
andthenselectand deleterows 20 through25. For an
worksheet,selectand deleterows 20
upper{ai1-test-only
thlough30.
Select PHStat ) Multiple-Sample Tests ) Kruskal-
Wallis Rank Test. In the procedure'sdialog box (shown
below), enter the Level of Significance and enter the cell
range of the unsummarized,unstackeddata as the Sample
Data Cell Range. Click First cells contain label, enter a
title as the Title, and click OK.

and Summing Ranks

Counting
lf youwantto usetheEEEEIIE workbookbut have DSa
usummarized, data,youcanusetheCOUNTIF
unstacked
Lavd d Slrficrrcc:
rangefor matching, value to be matched) function to
the samplesize and the SUMIF(cell rangefor Sarph Data Ccl Rangar
vslue to be matched, cell range for summing) 17 Fhstccllscortsr lebd
pre 12.14 ionto computethe sumof the ranksof eachpopulation.
rfunctions Tousethesefunctions,first sort your unstackeddata O-tp* Odims
88, BIO, in ascendingorder,usingthe columncontaining Tt'le: t
: ranks for values(not the population labels). Then add a column
:ions,read tiesby usingthe methodstatedon page ;.@i ,
nnks,breaking li ox !l cancd i
on. . Withyour dataso arranged,you can usethe formula
510 EXCELcoMPANIoN to chaoter12
UsingKruskal-Wallis.xls
Open the @ workbook to the
worksheet that contains the appropriate number of groups
(populations) for your problem. For example, for the
Section 12.6parachuteexample that contains four different
groups, open to the Kruskal-Wallis4 worksheet (shown in
Figure 12.16 onpage 495).
Kruskal-Wallis worksheets use the function
CHIINV(/evel of significance, degrees of freedom)
to compute the critical value and the function
CHIDIST(Xz test statistic, degrees of freedom) to com-
pute the p-value. When you open to a worksheet, enterthe
sample size, sum of ranks, and mean rank values in the
tinted cells in columns E through G, the level of signifi-
cance value in cell 84, and a title in cell Al to completethe
worksheet. #DIV/O! messagesthat may appear in several
cells disappearafter you enter data.This is not an error.
Forum Click on the Ar-rpnNarrvn,
MsrHoos link to
learn more abouthow the COUNTIF and SUMIF II
functions(seeSection812.4)couldbe usedwith
,ll
Kruskal-Wallisworksheets. t
I