Q. How many different tests does the textbook give you for applying the chi-square distribution? What are these tests? How could you use each of these tests at your place of business?

A. The chi-square distribution is a new test statistic and is used when there are more than two nominal scale categories. (Lind, 2018). The textbook gives three different tests for applying the chi-square distribution.

The goodness of fit - is used to compare the observed values against those that are expected. An example might include male to female ratio of customers in a store like Victoria's Secret.

Test of independence - is when the two variables are independent of each other. An example might include the age range and gender of patients in a waiting room.

Analysis of variance - is used to determine the influence of independent variables on the dependent variable. An example might include the use of a multivitamin in patients with cancer.

Lind, M. W. (2018). Statistical Techniques in Business and Economics (17th edition). New York: McGraw-Hill Education.

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