Notice: On March 31, it was **announced** that Statalist is moving from an email list to a **forum**. The old list will shut down at the end of May, and its replacement, **statalist.org** is already up and running.

[Date Prev][Date Next][Thread Prev][Thread Next][Date Index][Thread Index]

From |
"Marc Michelsen" <marcmichelsen@t-online.de> |

To |
<statalist@hsphsun2.harvard.edu> |

Subject |
st: Chi-squared test for independence of observed and expected frequencies |

Date |
Thu, 15 Jul 2010 17:33:23 +0200 |

Dear all, I am trying to copy the approach of Dittmar/Thakor (2007) "Why do firms issue equity?" p. 27: The authors divide their sample of debt and equity issuers into quartiles based on two explanatory variables, i.e. building a matrix. Specifically, they examine the observed number of firms that fall into one of the four categories and compare them to the expected frequencies. After that, they apply a chi-squared test for independence to determine if there are more or fewer firms than expected in each category. Untabulated results show that each of these frequencies is significant. I have managed to build the 4x3 matrix of observed and expected frequencies using the user-written program ". tabchi [1. Dimension] [2. Dimension]". The tabulated statistics include Pearson chi2(6) = 15.0080 Pr = 0.020 and likelihood-ratio chi2(6) = 15.4736 Pr = 0.017. However, I struggle to conduct this chi-squared test for independence to determine if there are more or fewer firms than expected in each category. I have tried user-written program ". chitesti" (part of the program tab_chi), plugging into it the expected and observed frequencies. This gives me Pearson chi2(11) = 15.0257 Pr = 0.181 and likelihood-ratio chi2(11) = 15.6908 Pr = 0.153. But this does not allow me to test the frequencies of each (!) category. What am I doing wrong? What is the correct and straightforward approach in Stata for this type of problem? Many thanks for considering this posting. Regards Marc * * For searches and help try: * http://www.stata.com/help.cgi?search * http://www.stata.com/support/statalist/faq * http://www.ats.ucla.edu/stat/stata/

**Follow-Ups**:**Re: st: Chi-squared test for independence of observed and expected frequencies***From:*Stas Kolenikov <skolenik@gmail.com>

**Re: st: Chi-squared test for independence of observed and expected frequencies***From:*Maarten buis <maartenbuis@yahoo.co.uk>

- Prev by Date:
**st: overid after ivregress** - Next by Date:
**Re: st: Nested Logit Model** - Previous by thread:
**st: overid after ivregress** - Next by thread:
**Re: st: Chi-squared test for independence of observed and expected frequencies** - Index(es):