1. Guide to Using Excel For Basic Statistical Applications To Accompany Business Statistics: A Decision Making Approach, 6th Ed. Chapter 12: Goodness of Fit Tests and Contingency Analysis By Groebner, Shannon, Fry, & Smith Prentice-Hall Publishing Company Copyright, 2005

2. Chapter 12 Excel Examples  Goodness of Fit Test Goodness of Fit Test Woodtrim Products  Contingency Analysis Contingency Analysis Benton Industries

3. Goodness of Fit - Woodtrim Products Issue: The company has recently become concerned that the ripsaw may not be cutting to the manufacture’s specifications Objective: Use Excel to determine whether the data set’s mean and standard deviation meet the manufacturer’s specifications. Data file is Woodtrim.xls

4. Open File Woodtrim.xls Goodness of Fit – Woodtrim Products

5. Label columns and define classes. Goodness of Fit – Woodtrim Products

6. Use the COUNTIF function to find the number of data values less than -.02. Goodness of Fit – Woodtrim Products

7. Again use the COUNTIF only this time subtract the observations in the previous cell to find the number of data values in the current cell. Goodness of Fit – Woodtrim Products

8. Continue to use COUNTIF while subtracting the observations in the previous cell to find the number of data values in the current cell. Goodness of Fit – Woodtrim Products

9. Notice change in the COUNTIF function for the final cell. Also, sum the observations. Goodness of Fit – Woodtrim Products

10. Use the NORMDIST function to find the expected probability of values less than -.02 given the expected mean and standard deviation. Goodness of Fit – Woodtrim Products

11. Continue to use the NORMDIST function to generate probabilities, but to get discrete values, subtract out the sum of the preceding cells. Goodness of Fit – Woodtrim Products

12. To find the Expected Frequencies multiply the Normal Distribution values by 300. Goodness of Fit – Woodtrim Products

13. Compute the Chi square value in column N using the formula for each combination of cells. Goodness of Fit – Woodtrim Products

14. Summing the individual values gives the Chi square value. Goodness of Fit – Woodtrim Products

15. To find the p- value click on the Function button, then select Statistics and CHITEST. Goodness of Fit – Woodtrim Products

16. Enter the ranges for the Actual and Expected frequencies. Goodness of Fit – Woodtrim Products

17. The p-value is determined. Goodness of Fit – Woodtrim Products

18. Contingency Analysis - Benton Industries Issue: The company was interested in determining the relationship between absenteeism and marital status. Objective: Use Excel to determine whether there is a statistically significant relationship between absenteeism and marital status. Data file is Benton.xls Use Excel to determine whether there is a statistically significant relationship between absenteeism and marital status. Data file is Benton.xls

19. Open File Benton.xls Contingency Analysis – Benton Industries

20. Use this Formula to find the expected number of single people with zero absences. Contingency Analysis – Benton Industries

21. Using similar formulas determine the expected values for all the combinations of absentee rate and marital status Shown in green. Contingency Analysis – Benton Industries

22. Use this formula to determine the Chi Square value. Contingency Analysis – Benton Industries

23. To find the Chi Square critical value, click on the function button, then select Statistical and CHIINV. Contingency Analysis – Benton Industries

24. Enter the appropriate Probability and Degrees of Freedom to find the critical value. Contingency Analysis – Benton Industries