Chi square distribution, Financial Management

Assignment Help:

Chi Square Distribution

If the difference between actual and the expected frequencies is zero, the sampling distribution of the chi square statistic c2 will be identical to a continuous distribution curve called as Chi Square distribution. There will be a different Chi Square distribution for each of the degrees of freedom. (We look at degrees of freedom in the next section.) The area under the curve for each of the degrees of freedom is 1. If the number of degrees of freedom is small, the curve will be skewed to the right as shown in the figure. As the number of degrees of freedom increases, the curve also gradually tends to become symmetrical in nature.

Figure 1

715_chi square distribution.png

Since different degrees of freedom have different sampling distributions, it is difficult to have a table that would give us the areas under the curve for all possible values. The table given in the appendix gives us the areas in the right tail at the significance level which are most commonly used in tests.


Related Discussions:- Chi square distribution

Certificate of deposits, A Certificate of Deposit (CD) can be defined...

A Certificate of Deposit (CD) can be defined as a negotiable promissory note, secure and short-term in nature. CDs are issued at a discount to the face value, the

Explain the post-acquisition integration plan, Explain the Post-acquisition...

Explain the Post-acquisition integration plan Post-acquisition integration plan Keep  all  channels  of communications open,  by  includin

par value, The face value of the debt security can be thought of as ...

The face value of the debt security can be thought of as the principal amount on which interest is paid by the issuer. It is the amount the issuer is willing to r

Finance, #qSeven years ago, after 15 years in public accounting, Stanley Bo...

#qSeven years ago, after 15 years in public accounting, Stanley Booker, CPA, resigned his posiition as Manager of Cost Systems for Davis, Cohen, and O''''''''Brien Public Accountan

Show the signs of overtrading, Q. Show the Signs of Overtrading? There ...

Q. Show the Signs of Overtrading? There are a number of usually recognised signs that a company may be overtrading. These are considered mutually with relevant financial data f

Finance, Ask questiSuggestion regarding Credit limit. Should it be approved...

Ask questiSuggestion regarding Credit limit. Should it be approved or not, what should be the amount of credit limit that electronics give to Booth Plastics.

Explain about the internal controls of benchmarking, Explain about the Inte...

Explain about the Internal controls of benchmarking   "Comprises control environment and control procedures. It includes all the procedures (internal contr

Explain the term stakeholders, Explain the term StakeHolders The range ...

Explain the term StakeHolders The range of stakeholders may comprise directors/managers, lenders, shareholders, employees suppliers and customers. These groups are probable to

Calculate cost of equity, 1. Why do you think you are asked to perform valu...

1. Why do you think you are asked to perform valuation given an array of discount rates? a. Would it not be more accurate to utilize, for example, CAPM to calculate cost of equi

Show external business risk, Q. Show External business risk? External r...

Q. Show External business risk? External risk is the result of operating conditions imposed on the firm by circumstances beyond its control. The external environments in which

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd