1 Chi-Square Test About. Business Research Methods Chi-Square Test 2 A chi-square test is a test in which the test statistic has a chi-square distribution when the null hypothesis is true, or any in which the probability distribution of the test statistic can be made to approximate a chi-square distribution as closely as desired by making the sample size large enough There are many forms of chi-square test Pearsons chi-square test is also known as the chi-square goodness of fit test of chi-square test for independence Yates chi-square test is also known as Yates correction fro continuity Business Research Methods Chi-Square Test 3 Pearsons chi-square test is the best-known of several chi-square tests whose results are evaluated by reference to the chi-square distribution Its properties where first investigated by Karl Pearson. It tests a null hypothesis that the frequency distribution of certain events observed in a sample is consistent with a particular theoretical distribution. The events considered must be mutually exclusive and have total probability 1. Chi-Square Test Business Research Methods Chi-Square Test 4 The first step in the chi-square test is to calculate the chi-square statistic The chi-square statistic is calculated by finding the difference between each observed and theoretical frequency for each possible outcome, squaring them, dividing each by the theoretical frequency, and taking the sum of the results Business Research Methods Chi-Square Test 5 Degree of Freedom = (r 1) (c 1) Business Research Methods Chi-Square Test 6 To test the hypothesis that a random sample of 100 people has been drawn from a population in which men and women are equal in frequency, the observed number of men and women would be compared to the theoretical frequencies of 50 men and 50 women. If there were 45 men in the sample and 55 women, then
Men Women Observed 45 55 Expected 50 50 Question Business Research Methods Chi-Square Test 7 A total of 1600 families were selected at random in a city to test the belief that high income families usually send their children to public schools and low income families often send their children to government schools. The following results were obtains
Test whether income and type of school are independent.
School Public Government Total Low 494 506 1000 High 162 438 600 Total 656 944 1600 Business Research Methods Chi-Square Test 8