Question

In: Statistics and Probability

Explain the Chi-Square test and when it is appropriate.

Explain the Chi-Square test and when it is appropriate.

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Expert Solution

There are two types of chi-square tests. Both use the chi-square statistic and distribution for different purposes:

  • A chi-square goodness of fit test determines if a sample data matches a population. For more details on this type, see: Goodness of Fit Test.
  • A chi-square test for independence compares two variables in a contingency table to see if they are related. In a more general sense, it tests to see whether distributions of categorical variables differ from each another.
    • A very small chi square test statistic means that your observed data fits your expected data extremely well. In other words, there is a relationship.
    • A very large chi square test statistic means that the data does not fit very well. In other words, there isn’t a relationship.

The Chi Square statistic is commonly used for testing relationships between categorical variables. The null hypothesis of the Chi-Square test is that no relationship exists on the categorical variables in the population; they are independent and alternative hypothesis is they are dependent.

The chi-square goodness of fit test is appropriate when the following conditions are met: The sampling method is simple random sampling. The variable under study is categorical. The expected value of the number of sample observations in each level of the variable is at least 5.

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