lecture_9_12 - Analysis of two-way tables Inference for...

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    Analysis of two-way tables Inference for two-way tables IPS chapter 9.12 © 2006 W.H. Freeman and Company
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Objectives (IPS chapter 9.1 and 9.2) Inference for two-way tables Hypothesis: no association Expected counts in two-way tables The chi-square test
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What is a Two-Way Table? A two-way table shows the relationship between two categorical variables.
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Two-way table for frequent binge drinking and gender: Row variable: Binge Drinking Column Variable: Gender Cell: Any combination of specific categories of the row and column variables. Gender Binge Drinker? Men Women Total Yes 1,630 1,684 3,314 No 5,550 8,232 13,782 Total 7,180 9,916 17,096
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Successful firms Franchise businesses are sometimes given an exclusive territory by contract. This means that the new outlet will not have to compete with other outlets of the same chain within its own territory. How does the presence of an exclusive-territory clause in the contract relate to the survival of the business? A random sample of 170 new franchises recorded two categorical variables for each firm: (1) whether the firm was successful or not (based on economic criteria) and (2) whether or not the firm had an exclusive-territory contract.
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Successful firms How does the presence of an exclusive-territory clause in the contract relate to the success of the business?
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  • Spring '08
  • ABDUS,S.
  • Chi-Square Test, Statistical hypothesis testing, Statistical power, Chi-square distribution, Pearson's chi-square test

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