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Chi-square Test

The Chi-square test is a statistical method used to determine whether there is a significant relation between categorical variables.

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  • The goal of chi-square test is to identify whether a difference between actual and predicted data is due to chance or to a link between the variable under consideration.
  • It is widely used in research to test hypotheses about the relationship between two or more categories of data.
  • Unlike tests for numerical data, the chi-square test deals with frequencies or counts rather than means or standard deviations.

The assumptions of a Chi-Square Test:

  • Both variables are categorical
  • All observations are independent
  • Cells in the contingency table are mutually exclusive
  • Expected value of cell should be 5 or greater than in at least 80% of cells.

The non-parametric tests are used when we do not know the distribution.

A test that compares the observations with the assumed or expected frequencies to how well it fits the observed frequencies is called a goodness of fit test.

  • In Chi-Square Goodness of Fit Test, the term goodness of fit is used to compare the observed sample distribution with the expected sample distribution.

Assumptions of Chi-Square Goodness of Fit Test

  • At least one variable should be categorical
  • Observations must be independent
  • The group of categorical variables should be mutually exclusive
  • The expected frequency of each group of the categorical variable is at least 5

Process to Chi-Square Goodness of Fit Test

  • Calculate the expected frequencies
  • Calculate chi-square
  • Find the critical chi-square value
  • Compare the chi-square value to the critical value
  • Decide whether to reject null hypothesis

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