CHAPTER FOUR

CHI-SQUARE
DISTRIBUTIONS
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Introduction
• Chi-Square analysis is used to testing hypothesis involving nominal data.

• Nominal data are also known by two names-categorical data and attribute data.

• The symbol that represent the chi-square distribution to designate for

statistics used is 2

• the chi-square distribution whose value depends on the number of degrees of

freedom (d.f.)

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Cont.….

• A chi-square distribution is a skewed distribution particularly with smaller d.f.

• As the sample size and therefore the d.f. increases, the 2 distributions
becomes a symmetrical distribution approaching normality.

• The general shape of the 2 distributions for smaller d.f. is given in the below
graph.

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Cont.….
• Conditions for Using Chi-Square Test
• The sample observations drawn from a population must be independent and
random
• The data must be in frequency (counting) form. If the original data are in
percentages, they must be converted into frequency.
• No frequency in any cell/category must be less than 5. If the frequency is
less than 5 for a category, you have to do some regrouping

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Areas of application
The major area of application of the chi-square distribution are
the following
• Tests for independence between two variables
• Tests for the equality of several proportions
• Goodness- of fit tests

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Tests for independence between two variables
• The chi-square independence test can be used to test the independence of two variables.

• In order to compute we follow the following steps

1. State the hypotheses and identify the claim.

2. Find the critical value.

3. Compute the test value.

4. Make the decision.

5. Summarize the results

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Example
• A researcher wishes to see if there is a relationship between the hospital and
the number of patient infections. A sample of 3 hospitals was selected, and the
number of infections for a specific year has been reported. The data are shown
next.

• At α = 0.05 can it be concluded that the number of infections is related to the

hospital where they occurred?
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Solution
• Step 1 State the hypothesis and identify the claim.
• H0: The number of infections is independent of the hospital.
• H1: The number of infections is dependent on the hospital (claim).
• Step 2 Find the critical value. The critical value at a 0.05 with (3 - 1)(3 - 1) = (2)(2) = 4
degrees of freedom is 9.488.
• Step 3 Compute the test value. First find the expected values.

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Cont.….
• The completed table is shown.

• Then substitute in the formula and evaluate.

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Cont.….
.

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Cont.….
• Step 4 Make the decision. The decision is to reject the null hypothesis since
30.518 > 9.488. See the next Figure

• Step 5 Summarize the results. There is enough evidence to support the claim
that the number of infections is related to the hospital where they occurred.
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Tests for the equality of several proportions

• In this situation, samples are selected from several different populations, and

the researcher is interested to determining whether the proportions of elements

that have a common characteristic are the same for each population.

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Example;
• Money and Happiness
A psychologist selected 100 people from each of four income groups and asked
them if they were “very happy.” The percent for each group who responded yes
and the number from the survey are shown in the table. At α = 0.05 test the
claim that there is no difference in the proportions.
Household Less than $30,000– $74,999 $75,000– $100,000 or total
income $30,000 (24%) (33%) $99,999 (38%) more (49%)
Yes 24 33 38 49 144
no 76 67 62 51 256
Total 100 100 100 100 400
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Solution
• Step 1 State the hypotheses and identify the claim.
• H0: p1 = p2 = p3 = p4 (claim)
• H1: At least one proportion differs from the others.
• Step 2 Find the critical value. The formula for the degrees of freedom is the same as before:
(R - 1)(C -1) (2 -1)(4 -1) =1(3) = 3. The critical value is 7.815.
• Step 3 Compute the test value. Since we want to test the claim that the proportions are
equal, we use the expected value as and the formula

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Cont.….

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Cont.….
•V

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Cont.….
• Step 4 Make the decision. Reject the null hypothesis since 14.149 > 7.815.
See the next Figure

• Step 5 Summarize the results. There is enough evidence to reject the claim
that there is no difference in the proportions. Hence the incomes seem to make
a difference in the proportions.
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Goodness- of fit tests

• The chi-square statistic can be used to see whether a frequency distribution

fits a specific pattern.

• In other word it used to know whether some observed pattern of frequencies

fit with an expected pattern of frequencies.

• When you are testing to see whether a frequency distribution fits a specific

pattern, you can use the chi-square goodness-of-fit test.

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example
Suppose as a market analyst you wished to see whether consumers have any
preference among five flavors of a new fruit soda. A sample of 100 people provided
the following data:
Cherry Strawberry Orange Lime Grape

32 28 16 14 10

If there were no preference, you would expect each flavor to be selected with equal
frequency. In this case, the equal frequency is 100/5 = 20. That is, approximately 20
people would select each flavor.
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Cont.….
Since the frequencies for each flavor were obtained from a sample, these actual frequencies are
called the observed frequencies. The frequencies obtained by calculation (as if there were no
preference) are called the expected frequencies. A completed table for the test is shown.

Frequency Cherry Strawberry Orange Lime Grape

Observed 32 28 16 14 10

Expected 20 20 20 20 20

Is there enough evidence to reject the claim that there is no preference in the selection of fruit
soda flavors, using the data shown previously? Let α = 0.05.
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Solution

• Step 1 State the hypotheses and identify the claim.

• H0: Consumers show no preference for flavors (claim).
• H1: Consumers show a preference.

• Step 2 Find the critical value. The degrees of freedom are 5 -1 = 4, and α = 0.05.
Hence, the critical value from x2- distribution Table is 9.488.

• Step 3 Compute the test value by subtracting the expected value from the
corresponding observed value, squaring the result and dividing by the expected
value, and finding the sum. The expected value for each category is 20, as
shown previously.
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Cont.….

• Step 4 Make the decision. The decision is to reject the null hypothesis, since
18.0 > 9.488, as shown in net Figure

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Cont.….

• Step 5 Summarize the results. There is enough evidence to reject the claim
that consumers show no preference for the flavors.

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THE END
THANK YOU
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