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    Chi square goodness of fit test

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    A large banking corporation believes that 80% of the loan applications it receives are approved within 24 hours. It decides to take a random sample of 10 loan applications every day for 3 months and record the number of the applications that are approved within 24 hours. The following data are obtained:

    Number of Loan Applications in 10 Approved in 24 Hours Frequency
    4 1
    5 5
    6 11
    7 19
    8 27
    9 18
    10 7
    Total 88

    a). Set up the necessary hypotheses to test whether the data come from a binomial distribution with n = 10 and p = 0.80.
    b). Find the expected frequency distribution for the data.

    c). A the 0.05 level of significance, is it reasonable to assume that the number of loan applications that are approved in 24 hours has a binomial distribution with p= 0.80.

    © BrainMass Inc. brainmass.com March 4, 2021, 5:47 pm ad1c9bdddf
    https://brainmass.com/statistics/chi-squared-test/chi-square-goodness-of-fit-test-10909

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    We use chi square goodness of fit test to test whether the data come from a binomial distribution.

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