You Want to Do a Chi-Square Test but One of the Cells

question 21

Multiple Choice

You want to do a chi-square test but one of the cells in the crosstab has an expected frequency of 0.5. What should you do?

• A) Continue with the chi-square test. There is no problem.
• B) Divide the value you get for chi-square by 0.5.
• C) Do a One-Way ANOVA instead of chi-square
• D) Use Recode to collapse one or both of the variables.

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Definitions:

Perfect Competitor

A firm in a perfectly competitive market where it is a price taker and has no control over the market price of its product.

Imperfect Competitor

A firm or entity that has some control over the market price of its product because it does not operate in a perfectly competitive market.

Perfect Competitor

A theoretical market structure where many firms offer identical products, firms are price takers, and there are no barriers to new firms entering the market.

Imperfect Competitor

A market participant who does not follow the norms of perfect competition, possibly due to having some control over prices or market share.