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Chi-Square Test

Business Research Methods


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Chi-Square Test
About.
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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
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Chi-Square Test
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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
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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
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Chi-Square Test
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Degree of Freedom = (r 1) (c 1)
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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
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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
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Chi-Square Test
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