Chi Square Goodness of Fit Test
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A finance professor has just given a midterm examination in her corporate finance course. In particular, she is interested in determining whether the distribution of 100 exam scores is normally distributed. Perform a chi-square goodness-of-fit test. Report and interpret the computed p-value. What can you conclude about normality?
Scores:
72
95
83
85
65
82
84
74
74
82
81
75
78
78
72
73
75
79
72
75
77
71
78
83
84
71
81
82
79
71
73
89
74
75
93
74
88
83
90
82
79
62
73
88
76
76
76
80
84
84
91
70
76
74
68
80
87
92
84
79
80
91
74
69
88
84
83
87
82
72
97
88
70
83
92
94
63
83
81
84
78
84
91
78
71
77
78
70
86
79
70
75
80
75
77
74
87
78
85
70
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Solution Summary
The solution provides step-by-step method of performing a chi-square goodness of fit test. All the steps and calculations of hypothesis testing (formulation of null and alternate hypotheses, selection of significance level, calculation of expected frequencies, and calculation of chi-square, calculation of degrees of freedom, decision rule and interpretation of results) have been shown in details. Calculations have also been shown in EXCEL for better understanding.
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