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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.

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

#### Solution Preview

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.

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