Chi-Square Test

Chi-Square Test

Business Research Methods

About.
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
Chi-Square Test

Business Research Methods

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

Chi-Square Test

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Degree of Freedom = (r 1) (c 1)

Chi-Square Test

Business Research Methods

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

Chi-Square Test

Men

Women

Observed

45

55

Expected

50

50
Business Research Methods

Question
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
School
Public

Government

Total

Low

494

506

1000

High

162

438

600

Total

656

944

1600

Test whether income and type of school are independent.

Chi-Square Test

Business Research Methods

Chi-Square Test

Business Research Methods

Chi-Square Test

Business Research Methods