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Chi-square Distribution Essay Example

Chi-square Distribution

The answers to possible questions from the variables could ‘yes, there is a relationship between sales and use of software’ or ‘no’ (Bowerman, OConnell, Orris & Murphree, 2010).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.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. The calculations prove an adequate dependence on sales on the use of the software.Ha: sales in NE=sales in SE= Sales in Central =- sales in West. Consequently, the null hypothesis, in this case, will be that the alternative hypothesis is not true where the sales volume in the three regions will not be the same but very (Bartholomew, Steele, Moustaki, & Galbraith, 2002). We develop the contingency table below and test as in the subsequent table.Therefore, considering a probability level (alpha) of 0.05 and checking on the chi distribution table given as appendix 1 against the degree of freedom obtained we find a probability of 7.815 which is far less than our computed chi-squared value of 37. This, therefore, confirms the positive hypothesis of a relationship between the use of software and volume of sales and so we reject the null hypothesis.Chi-square test rejects the null hypothesis that all the sales agents of company W must sale same volume of the software and so we realize a variation in sales for those who used the software and those who did not use the software. We find from the analysis, that those who did not use the software sold more but cannot hastily conclude based on the sales volume but through the chi-squared test.

preview essay on Chi-square Distribution
  • Pages: 5 (750 words)
  • Document Type: Essay
  • Subject: Statistics
  • Level: Undergraduate
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