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1 (7)
Chi-Square Tests
Chi-square Test
1 any hypothesis test that assumes that the sampling distribution of the test
statistic follows the chi-square distribution, which is the distribution of the
sum of squared standard normal scores.
Example:
Chi-square test can be used to test if there is a
significant relationship between the economic status of
customers and the brand of medicine that they buy in a
drugstore. We can use this test since both variables are
qualitative.
Chi-square Statistic
2 the chi-square statistic is given by
Thus,
Dependent and Independent Variables
3 If the first variable affects the second variable, then the two categorical
variables are dependent. If there exists no relationship between the two
variables, then they are independent.
Example:
Consider the two variables: economic status of a person
and their brand preference. If economic status affects
the brand preference of customers, we say that the two
categorical variables (economic status and brand
preference) are dependent.
Dependent and Independent Variables
3 If the first variable affects the second variable, then the two categorical
variables are dependent. If there exists no relationship between the two
variables, then they are independent.
Example:
Otherwise, we say that they are independent, which
means that there exists no relationship between the two
variables.
Example 1: Suppose that the expected frequencies of
two categories are and . When a researcher conducted
the same study, he recorded and as frequencies of the
two categories, respectively. What is the value of ?
Solution:
Chi-square Statistic
2 the chi-square statistic is given by