Observed values
from class:
Intro to Business Statistics
Definition
Observed values are the actual data points collected from an experiment or survey. They are used to compare with expected values in statistical tests.
5 Must Know Facts For Your Next Test
- Observed values are essential for calculating the chi-square statistic in a goodness-of-fit test.
- The difference between observed and expected values helps determine if there is a significant deviation from the expected distribution.
- In a contingency table, observed values are the frequencies found within each cell of the table.
- Large differences between observed and expected values can indicate that the model does not fit well.
- Summing the squared differences between observed and expected values, divided by the expected value, gives you the chi-square statistic.
Review Questions
- What role do observed values play in calculating the chi-square statistic?
- How can large differences between observed and expected values be interpreted?
- Why are observed values important in a goodness-of-fit test?
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