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Observed Frequency

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Intro to Business Statistics

Definition

Observed frequency refers to the actual or empirical count of the number of occurrences of a particular event or category within a dataset. It is a fundamental concept in the context of the Chi-Square Tests, which are used to analyze the relationship between categorical variables and determine whether observed frequencies differ significantly from expected frequencies.

5 Must Know Facts For Your Next Test

  1. Observed frequency is the actual count or number of times a particular event or category is observed in a dataset.
  2. Observed frequencies are compared to expected frequencies to determine if there is a statistically significant difference between the two.
  3. The Chi-Square test is used to determine if the observed frequencies are significantly different from the expected frequencies.
  4. Observed frequencies are essential for conducting the Goodness-of-Fit test, which evaluates how well the observed data fits a hypothesized distribution.
  5. Observed frequencies are also used in the Chi-Square test of independence, which examines the relationship between two categorical variables.

Review Questions

  • Explain the role of observed frequency in the context of the Chi-Square Tests.
    • Observed frequency is a crucial component of the Chi-Square Tests, as it represents the actual or empirical count of occurrences for each category or event being analyzed. The observed frequencies are compared to the expected frequencies, which are the theoretical or predicted counts based on the null hypothesis. The Chi-Square test statistic is calculated using the observed and expected frequencies, and it is used to determine whether the observed frequencies differ significantly from the expected frequencies, indicating a potential relationship or association between the variables being tested.
  • Describe how observed frequency is used in the Goodness-of-Fit test.
    • In the Goodness-of-Fit test, the observed frequencies are compared to the expected frequencies based on a hypothesized distribution. The null hypothesis for this test is that the observed data follows the specified distribution. The Chi-Square statistic is calculated using the observed and expected frequencies, and if the test statistic is larger than the critical value, the null hypothesis is rejected, indicating that the observed data does not fit the hypothesized distribution. The Goodness-of-Fit test is an important application of observed frequency, as it allows researchers to assess how well the observed data matches a theoretical or expected distribution.
  • Analyze the relationship between observed frequency and the Chi-Square test of independence.
    • The Chi-Square test of independence is used to determine if there is a significant relationship between two categorical variables. In this test, the observed frequencies are compared to the expected frequencies, which are calculated based on the assumption that the two variables are independent. The observed frequencies represent the actual counts of the occurrences of each combination of the categorical variables. The Chi-Square statistic is then calculated using the observed and expected frequencies, and if the test statistic is larger than the critical value, the null hypothesis of independence is rejected, indicating a significant relationship between the two variables. The observed frequencies are essential in this analysis, as they provide the empirical data needed to evaluate the hypothesized relationship between the categorical variables.
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