Introduction to Statistics Steps in Significance/Hypothesis Testing Using the Chi-Square (2) Distribution

Step 1: State null (Ho) and alternative (Ha) hypotheses. When we examine a relationship from sample data presented in a two-way table, we want to know if the two variables are independent (no significant relationship) or related in the population. Does the relationship we observe exist by chance or not? When using the Chi-square (2) distribution to establish if a relationship exists between two categorical variables, the null hypothesis (Ho) statement does not contain population symbols. Rather, we make a written statement. For example, about social class and formal education, we can write: Ho: Education is not related to social class (education and social class are independent) The alternative hypothesis (Ha) is also a written statement in which we declare a relationship to exist between two variables. For example: Ha: Education is related to social class. It is important to note that hypotheses tested using the Chi-square distribution are not two-tailed. 2 values are always positive because the Chi-square distribution ranges from zero to positive infinity. Step 2: Compute a test statistic. The test statistic is calculated using sample data in a two-way table. You use two formulas: the first formula is for finding expected frequencies/counts (fe). In the second formula, the 2 test statistic, you compare the expected frequency/count (fe) to the frequency/count you observe (fo) in the two-way table. You must calculate fe for each cell in a two-way table:

fe =

[(RowM arg inal )x(ColumnM arg inal )]

TotalSampleSize

Then, for each cell in a two-way table, perform the chi-square calculation in [ ] below, adding up the calculation for each cell.

( f f e )2 2 = o fe

M. Berntson Grinnell College Spring 2002 Steps in Hypothesis Testing using the Chi-Square Distribution

Step 3: Make a decision about the null hypothesis (Ho). In this step, you will either reject or not reject Ho. When you reject Ho, you conclude in favor of the alternative hypothesis (Ha) of a statistically significant relationship. When you do not reject Ho, you conclude in favor of the null hypothesis of no statistically significant relationship. There are two decision rules you may follow. You should know how to use each one. Decision Rule 1 instructions: Find a p-value and compare it to your significance level (). P-values are the probabilities associated with the test statistic (observed 2) found in step 2 and degrees of freedom. Degrees of freedom [(#rows - 1)(#columns - 1)] and probabilities organize the values of 2 found in the body of Moore's Table E. Use Moore's Table E and the instructions below to find the p-value. Note that when finding a p-value in Table E, your observed 2 might fall between two values of 2. This means that your p-value will fall between two probabilities. Finding P-Values using Table E Test Statistic (observed 2) Look for 2 in body of table

P-value given df [(r-1)(c-1)], find probability in table (this might be a range)

Decision rule 1: If range of p-values < , reject Ho (eg: .01 to .025 < .05). If range of pvalues > , do not reject Ho (eg: .15 to .20 > .05). Decision Rule 2 instructions: Find a critical value (2*) and compare it to your test statistic. Critical values (2*) are the 2 scores in Table E associated with your level of significance () and degrees of freedom. Finding Critical Values (2*) Using Table E Critical value (2*) given df [(r-1)(c-1)] and , find value of 2 in table Decision rule 2: If test statistic > 2*, reject Ho. If test statistic < 2*, do not reject Ho.

M. Berntson Grinnell College Spring 2002 Steps in Hypothesis Testing using the Chi-Square Distribution