Question

Explain the summary of the Chi Square steps.

Answer 1

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Here' is the summary of Chi-Square test steps:

We can calculate the chi square statistic x2 by folllwing the beneath steps:

1. Define the hypothesis set as :

   1. Ho: The two categorical variables are independent.

      Ha: The two categorical variables are related.

2. The Expected number , E, can be calculated as Sum of Row * Sum of Column divided by total observations
3. For each observed number in the table subtract the corresponding expected number (O — E).
4. Square the difference [ (O —E)2 ].
5. Divide the squares obtained for each cell in the table by the expected number for that cell [ (O - E)2 / E ].
6. Sum all the values for (O - E)2 / E. This is the chi square statistic.
7. Now, get the degree of freedom, df, using the formula (r-1)*(c-1) for the contingency table that has r rows and c columns,
8. Now, for the Chi-Square statistic(X^2) , and degree of freedom (df) get the p-value by the following formula or from the Chi-Square table. Excel formila = 1- CHISQ.DIST( X^2, df, TRUE)
9. If p-value < alpha, we reject Ho and conclude that variables aren't independent. If p-value > alpha, we fail to reject Ho and say that the variables are independent.