EXAMPLE 9.9 Competitiveness and Flexibility
CASE 9.1 The single population studied is
The researchers had a sample of 61 companies. They measured two categorical variables for each company:
The null hypothesis for the chi-square test is
: The row variable and the column variable are independent.
The parameters of the model are the probabilities for each of the six possible combinations of values of the row and column variables. If the null hypothesis is true, the multiplication rule for independent events says that these can be found as the products of outcome probabilities for each variable alone.
Reminder
multiplication rule for independent events, p. 188