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    Chi-square Test for Goodness of Fit:Safety of corporate bond

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    1. Seven percent of mutual fund investors rate corporate stocks "very safe," 58% rate them "somewhat safe,." 24% rate them "not very safe," 4% rate them "not at all safe," and 7% are "not sure." A poll asked 529 mutual fund investors how they would rate corporate bonds on safety. The responses are as follows.

    Safety Rating Frequency

    Very safe 48
    Somewhat safe 323
    Not very safe 79
    Not at all safe 16
    Not sure 63
    Total 529

    Do mutual fund investors' attitudes toward corporate bonds differ from their attitudes toward corporate stocks? Support your conclusion with a statistical test using = .01.

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    https://brainmass.com/statistics/chi-squared-test/chi-square-test-goodness-fit-safety-corporate-bond-346096

    Solution Preview

    Please see the attachment.

    1. Seven percent of mutual fund investors rate corporate stocks "very safe," 58% rate them "somewhat safe,." 24% rate them "not very safe," 4% rate them "not at all safe," and 7% are "not sure." A poll asked 529 mutual fund investors how they would rate corporate bonds on safety. The responses are as follows.

    Safety Rating Frequency

    Very safe 48
    Somewhat safe 323
    Not very safe 79
    Not at all safe 16
    Not ...

    Solution Summary

    The solution provides step by step method for the calculation of chi square test for goodness of fit. Formula for the calculation and Interpretations of the results are also included. Interactive excel sheet is included. The user can edit the inputs and obtain the complete results for a new set of data.

    $2.19

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