Chi-Square Test

by
Dr Lalit Prasad
 Outline
• What is Chi-Square Test?
• Assumptions
• An example : Chi-Square Test
 Chi-Square test

• Chi-square test is used for finding significant

relations. It is used to determine if categorical
data shows dependency or the two
classifications are independent.
 Chi-Square Test
• There are two popular types of Chi-Square
tests.
• Chi-square test for goodness of fit- analysis of
single categorical variable. The chi-square is
used to find the bias of respondents regarding
various related factors.
• Chi-square test for independence or
relatedness –analysis of relationship between
two categorical variables.
 Assumptions of chi-Square Test
• Assumption #1: Two variables should be measured at
an ordinal or nominal level (i.e., categorical data).
• Assumption #2: Two variable should consist of two or
more categorical, independent groups.
• Assumption #3: The data consists of entire populations
or be randomly sampled from the population.
• Assumption # 4: 80% of the expected frequencies
should be 5 or more. However the observed frequencies
can be any value, including Zero.
• Assumption # 5: Preferably no data point should be
zero.
 Topic:
A study of relationship between educational
background and Academic grades : A study
in B-schools of Pune
 Scale of Measurement

Nominal Ordinal

Educational Code No Academic Code No.

Background Grade
BCOM 1 A 1
BE 2
BSC 3 B 2
BBA 4
BA 5 C 3
 Objectives
• To study the educational background and
Academic performance in terms of grades
of the students.
• To study the relationship between
educational background and academic
performance in terms of grades of the
students.
 Hypotheses
Null Hypothesis: H0: There is no significant relationship
between educational background and academic grades of
the students
or
Educational Background and academic grades of students are
independent to each other.

Alternative Hypothesis: H1: There is a significant relationship

between educational background and academic grades of
the students.
or
Educational Background and academic grades of students are
dependent to each other
Data and Data Analysis
 Reporting of Result(Output)
• The data collected for analysis holds all the assumptions of chi-square test.
• The significant value of Pearson's chi-square is 0.000<0.05, So it has
sufficient evidence as per decision rule to reject the null hypothesis. Hence,
H1 i.e. Alternative Hypothesis is accepted.
• Contingency Coefficient (values lies 0 to 1, close to 0 , no relationship,
between 0.5 to 1, strong correlation): The value of contingency coefficient is
0.506, it is greater than 0.5, so there is a strong correlation.
• Lambda (close to 0, no relationship, less than 0.2 weak, 0.2 to 0.3 moderate,
more than 0.3 , strong): The lambda value is 0.317, means there is a strong
relationship.
• Cramer’s V (close to 0, no relationship, less than 0.2 weak, 0.2 to 0.3
moderate, more than 0.3 , strong): The Cramer’s V value is 0.414, means
there is a strong relationship.

• It means that there is a significant relationship between educational

background and academic performance of the students.
Thank You