Chi-square Distribution - Essay Example

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The author of this essay "Chi-square Distribution" casts light on the software sales analysis. It is mentioned that hypothesis is the first stage in probability analysis where assumptions are made towards the outcome and set the base for testing the variables. …
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Chi-square Distribution
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Download file to see previous pages By applying the chi-square distribution and analysis to the information provided for WidgeCorp Company, we are able to find whether the data and the chi test are independent and thus be able to accept or reject the null hypothesis. We realize that the sales data and the use of the software will present with categorical data which ultimately allows us to use non-parametric analysis through a chi-squared test. The answers to possible questions from the variables could ‘yes, there is a relationship between sales and use of software’ or ‘no’.Considering the distribution of the sales force of WidgeCorp, it is convenient to assume that in each region, there are 500 sales persons which give the total of 500. Since we are told that only half of this number was given the software during the test period, we hypothesize that suppose this number is equally divided for the Southeast and the West region, then all of the agents in these two regions were given the software leading to the chi-square analysis below.Consequently, the data can be presented in a contingency table as indicated below to facilitate the computation of chi-squared for the stated hypothesis.From the calculations, we obtain a chi-square of 2.62 with a degree of freedom for the data set 1 (obtained from rows and columns). From the chi distribution table in appendix 1 with section provided below, we obtain a chi-square probability of 3.81 which is greater than the calculated x2 and we, therefore, reject the null hypothesis in this regard. ...Download file to see next pagesRead More
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