Psychological Statistics Chapter 17: The Chi-square Statistic test for Goodness

of fit and Independence

The chi-square (χ²) statistic is a vital tool in statistical analysis that is used to evaluate the fit of observed
data to predicted distributions and determine the correlations between variables. Numerous disciplines,
including psychology, sociology, economics, and biology, use this adaptable exam extensively. This
paper explores the use of the chi-square statistic in both independence and goodness-of-fit tests, delving
into its subtleties.

The goodness-of-fit test, a cornerstone of chi-square analysis, assesses whether the observed frequency
distribution of a categorical variable deviates from a hypothesized or expected distribution. This test is
particularly useful when determining whether a sample of data is likely to have been drawn from a
specific theoretical distribution, such as the binomial or Poisson distribution.

Next, at a certain level of significance—typically 0.05—the chi-square statistic is compared to a critical

value derived from a chi-square distribution table. Assuming that the actual data is in line with the
predicted distribution, the null hypothesis is rejected if the computed chi-square statistic is greater than
the critical value. Alternatively, we are unable to reject the null hypothesis if the chi-square statistic is less
than the crucial threshold.

In our everyday lives, the chi-square statistic is a commonly used statistical tool with many uses.
From social science and government to healthcare and marketing, its capacity to appraise the fit of
observed data to anticipated distributions and determine the correlations between categorical variables
makes it useful in many categories.
The chi-square statistic is an essential instrument for analyzing data and performing hypothesis testing in
a variety of scenarios, working across disciplinary boundaries
Analyse if the observed data fits perfectly with specified frameworks or theoretical probabilities.

These examples illustrate the pervasive role of the chi-square statistic in our daily lives. Its ability to
provide insights into relationships, patterns, and deviations makes it an indispensable tool for decision-
making, research, medical exploration, and understanding the world around us.

The chi-square test determines if two category data are independent of one another. The chi-square
statistic and the goodness-of-fit test are identical when compared to a crucial value from a chi-square
distribution table at a predetermined level of significance. By using this test, you can ascertain whether
the frequency distribution of two variables as seen and what would be predicted if they were independent
should be the same. In cases when the computed chi-square statistic exceeds the critical value, we reject
the null hypothesis, which maintains that the two variables are independent. In case the chi-square
statistic is lower than the critical value, the null hypothesis will be considered rejected.