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Quant :2007 Random Set 1 Q18, Random Set 2 Q9

liewpw05

New Member
Hi David,

With regards to the above questions in the random set , i am curious why the chi square test statistic used is n*(sample variance)/(population variance) instead of (n-1)*(sample variance)/(population variance)?

Thanks

Peggy
 

David Harper CFA FRM

David Harper CFA FRM
Staff member
Subscriber
Hi Peggy,

I had to look this up, frankly. Last year the Stat text was Spiegel Statistics (the Gujarati replaced just this year for stat, 2008). Even for his practice questions with *samples* he is using:

n*(sample variance)/(population variance)

So, the short answer is: we were following the assigned Spiegel. But Gujarati (at 5.21) appears to be more precise/thoughtful on this...

David
 
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