Used in statistics and statistical modelling to compare an anticipated frequency to an actual frequency. Goodness-of-fit tests are often used in business decision making. In order to calculate a chi-square goodness-of-fit, it is necessary to first state the null hypothesis and the alternative hypothesis, choose a significance level (such as α = 0.5) and determine the critical value.

For example, a small community gym might be operating under the assumption that it has its highest attendance on Mondays, Tuesdays and Saturdays, average attendance on Wednesdays and Thursdays, and lowest attendance on Fridays and Sundays. Based on these assumptions, the gym employs a certain number of staff each day to check in members, clean facilities, offer training services and teach classes. However, the gym is not performing well financially and the owner wants to know if these attendance assumptions and staffing levels are correct. The owner decides to count the number of gym attendees each day for six weeks. He can then compare the gym's assumed attendance with its observed attendance using a chi-square goodness-of-fit test for example. With the new data, he can determine how to best manage the gym and improve profitability.

Investment dictionary. . 2012.

Look at other dictionaries:

  • Goodness of fit — The goodness of fit of a statistical model describes how well it fits a set of observations. Measures of goodness of fit typically summarize the discrepancy between observed values and the values expected under the model in question. Such… …   Wikipedia

  • goodness of fit — 6 : fit 1d * * * goodness of fit (statistics) The extent to which observed data matches the values predicted by a theorem • • • Main Entry: ↑good * * * Statistics the extent to which observed data match the values expected by theory …   Useful english dictionary

  • Goodness of Fit — Die Anpassungsgüte (engl. goodness of fit) beschreibt, wie gut ein statistisches Modell eine Menge von Beobachtungen trifft. Das Maß der Anpassungsgüte fasst typischerweise die Diskrepanz zwischen beobachteten Werten und Werten, die man aufgrund… …   Deutsch Wikipedia

  • goodness of fit — Date: 1895 the conformity between an experimental result and theoretical expectation or between data and an approximating curve …   New Collegiate Dictionary

  • goodness of fit — Degree of agreement between an empirically observed distribution and a mathematical or theoretical distribution …   Medical dictionary

  • goodness of fit — A statistical term used to indicate the correspondence between an observed distribution and a model or hypothetical mathematical distribution. In many statistical tests of significance the hypothetical or expected distribution is a model based… …   Dictionary of sociology

  • goodness of fit — noun (in statistics) the measure of how closely a set of observed values approximate those derived from a theoretical model …   Australian English dictionary

  • goodness of fit Statistics — the extent to which observed data match the values expected by theory. → goodness …   English new terms dictionary

  • Goodness-of-Fit-Test — ⇡ statistische Testverfahren …   Lexikon der Economics

  • fit — I. noun Etymology: Middle English, from Old English fitt; akin to Old Saxon fittea division of a poem, Old High German fizza skein Date: before 12th century archaic a division of a poem or song II. adjective (fitter; fittest) Etymology: Middle… …   New Collegiate Dictionary

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