THE CHI-SQUARE

TEST:
applications in
marketing

Doc Mandy
 01 What is Chi-Squre Test?

02 Important Things to

CONTENTS
consider in using
Chi-Square Test
CHI-SQUARE TEST
The Chi-Square test is a statistical procedure
used by researchers to examine the differences
between categorical variables in the same
population.

It is the most useful when analyzing cross

tabulations of survey response data.

It informs researchers about wheather or not

there is significally difference between how the
variuos segments or categories answered a give
question.
IMPORTANT THINGS TO CONSIDER IN USING
CHI-SQUARE TEST
First, Chi-Square only tests whether two individual variables are independent in a
? binary, “yes” or “no” format.
Chi-Square testing does not provide any insight into the degree of difference
between the respondent categories, meaning that researchers are not able to tell
which statistic (result of the Chi-Square test) is greater or less than the other.

Second, Chi-Square requires researchers to use numerical values, also known as

? frequency counts, instead of using percentages or ratios. This can limit the
flexibility that researchers have in terms of the processes that they use.
EXAMPLE

? MARITAL
VS EDUCATIONAL
STATUS ATTAINMENT

Null Hypotheses: There is no relation between the marital status and

educational attainment

Alternative Hypotheses: There is significant relation between the marital

status and educational attainment
EXAMPLE

Table of Observed Value

EDUCATIONAL HIGH HIGH COLLEGE COLLEGE OTHER TOTAL
ATTAINMENT /
MARITAL
SCHOOL SCHOOL LEVEL GRADUATE
STATUS LEVEL GRADUATE

SINGLE 5 16 46 35 19 121
MARRIED 15 33 27 33 21 129
TOTAL 20 49 73 68 40 250
 EXAMPLE

Table of Observed Value

HIGH HIGH COLLEGE COLLEGE OTHER TOTAL
EDUCATIONAL
ATTAINMENT / SCHOOL SCHOOL LEVEL GRADUATE
MARITAL
STATUS
LEVEL GRADUATE
= 9.68 ........
SINGLE 5 16 46 35 19 121
MARRIED 15 33 27 33 21 129
TOTAL 20 49 73 68 40 250

Table of Expected Value

EDUCATIONAL HIGH HIGH COLLEGE COLLEGE OTHER
ATTAINMENT /
MARITAL
SCHOOL SCHOOL LEVEL GRADUATE
STATUS LEVEL GRADUATE

SINGLE 9.68 23.72 35.33 32.91 19.36

MARRIED 10.32 25.28 37.67 35.09 20.64
 Calculation of
EXAMPLE
Observed Expected
value (O) value (E)

5 9.68 2.26
Table of Observed Value
15 10.32 2.12 EDUCATIONAL
HIGH
SCHOOL
HIGH
SCHOOL
COLLEGE
LEVEL
COLLEGE
GRADUATE
OTHER TOTAL

ATTAINMENT / LEVEL GRADUATE

MARITAL
STATUS

16 23.72 2.51
SINGLE 5 16 46 35 19 121
33 25.28 2.36 MARRIED 15 33 27 33 21 129

46 35.33 2.85 TOTAL 20 49 73 68 40 250

27 37.67 3.02

35 32.91 0.13 Table of Expected Value

HIGH SCHOOL HIGH SCHOOL COLLEGE COLLEGE OTHER
LEVEL GRADUATE LEVEL GRADUATE
33 35.09 0.12 EDUCATIONAL
ATTAINMENT /
MARITAL
STATUS
19 19.36 0.006

21 20.64 0.006 SINGLE 9.68 23.72 35.33 32.91 19.36

MARRIED 10.32 25.28 37.67 35.09 20.64
15.382 Calculated value
EXAMPLE

Degrees of Freedom
DOF = (columns - 1) (rows - 1)
Table of Observed Value
= (5-1) (2-1)
HIGH HIGH COLLEGE COLLEGE OTHER TOTAL
= 4x1 EDUCATIONAL SCHOOL SCHOOL LEVEL GRADUATE
= 4 LEVEL GRADUATE
ATTAINMENT /
MARITAL
STATUS

Significance level = 0.05 SINGLE 5 16 46 35 19 121

MARRIED 15 33 27 33 21 129

TOTAL 20 49 73 68 40 250

Table of Expecetd Value

HIGH SCHOOL HIGH SCHOOL COLLEGE COLLEGE OTHER
LEVEL GRADUATE LEVEL GRADUATE
EDUCATIONAL
ATTAINMENT /
MARITAL
STATUS

SINGLE 9.68 23.72 35.33 32.91 19.36

MARRIED 10.32 25.28 37.67 35.09 20.64
EXAMPLE

Significance level = 0.05 Therefore

Tabular value = 9.49

Calculated value = 15.382

>
Calculated value = 15.382 Tabular value = 9.49

we reject Null Hypotheses and accept

alternative hypotheses

Alternative Hypotheses: There is significant

relation between the marital status and
educational attainment
Thank you
for listening
to

DOC MANDY