Join our Free Webinar
10th December 2024 | 1PM CET
Chi Square Test

What is a Chi-Square Test and How Does it Work?

Search

What is the Chi-Square Test and When to Use

 

The chi-square test is a statistical method used to compare differences between two or more variables. This test can be used to determine if there is a significant difference between the means of two or more groups or a significant association between two or more variables.

The chi-square test is a non-parametric test which does not require the data to be normally distributed. This test is used when the data are categorical (e.g., levels of severity). The chi-square test can be used for both large and small sample sizes.

How the Chi-Square Test Works

 

The chi-square test statistic (Χ2) is calculated by taking the difference between the expected frequencies and the observed frequencies and squaring this value. This value is then divided by the expected frequency. The chi-square statistic can be used to compare two or more variables in order to determine if there is a significant difference between them.

The null hypothesis for the chi-square test states that there is no difference between the observed and expected frequencies. The alternative hypothesis states that there is a difference between the observed frequencies and the expected frequencies.

If the p-value for the chi-square statistic is less than 0.05, then this indicates a significant difference between the observed and expected frequencies, and we reject the null hypothesis. Suppose the p-value for the chi-square statistic is greater than 0.05. In that case, this indicates that there is not a significant difference between the observed and expected frequencies, and we fail to reject the null hypothesis.

 

Calculating the Chi-Square Test Statistic

 

The chi-square test statistic is calculated by taking the sum of the squared differences between the observed values and the expected values, divided by the expected values. This can be seen in the formula below:

χ2=∑((O−E)^2/E)

where:

χ2= chi-square test statistic

O=observed value

E=expected value

The chi-square test statistic can be compared to a table of critical values to determine whether or not there is a significant difference between the two variables. If the chi-square test statistic is greater than or equal to the critical value, then there is a significant difference between the two variables.

 

Deciding Which Type of Test to Use

 

It’s important to note that there are different types of chi-square tests, including:

The Goodness of Fit Test: This test compares an observed distribution to a theoretical one.

The Independence Test: This test compares two categorical variables to determine if they are independent of each other (e.g., gender and political party affiliation).

When deciding which type of chi-square test to use, it’s essential to consider the type of data you have and your research question(s). If you have categorical data and want to know if there’s a significant difference or association between two or more variables, then you would use a chi-square test.

Example of using the Chi-Square Test

 

Let’s say we want to know if there is a significant difference between the number of males and females who voted for Obama in the last election. We would use a chi-square test to compare the number of males and females who voted for Obama.

We would first calculate the chi-square statistic by taking the difference between the observed and expected frequencies and squaring this value. We would then divide this value by the expected frequency.

The p-value for the chi-square statistic is 0.027, which is less than 0.05. This indicates a significant difference between the number of males and females who voted for Obama, and we reject the null hypothesis.

Conclusion:

 

The chi-square test is a statistical method used to compare differences between two or more variables. This non-parametric test does not require data to be normally distributed and can be used for both large and small sample sizes. The chi-square test can determine if there is a significant difference between two group means or a significant association between two variables. When deciding which type of chi-square test to use, it’s essential to consider both the type of data you have and your research question(s).

Jump To Section

Accelerate success

Level-Up Today

Ready to talk?
I want to talk to your experts in Business Transformation so ...

Related Articles

LEAN SIX SIGMA Online Courses

Ready to start your journey into the world of Lean with this free course?

FREE COURSE

A Lean focused continious improvement certification course

only £119

Propel your career forward, tackle complex problems and drive change

Only £167

The ultimate fast-track for future leadership

only £849

Become an expert in change management and complex problem-solving.

Only £1649

TAKE OUR QUIZ

WHICH COURSE is right for you?

Take our short quiz to find out which of our courses is right for you. 

Join us for a Free Demo

We will talk you through our business transformation & lean training solutions

Learn to Lead The Change

Days :
Hours :
Minutes :
Seconds

— NEXT ONLINE WEBINAR STARTS 10th DECEMBER —

JOIN OUR WEBINER
25% OFF

Join us for a Free Demo

We will talk you through our business transformation & lean training solutions

Learn to Lead The Change

Take our Business Transformation Quiz

Are you ready for change?

Learn to Lead The Change

Take our Business Transformation Quiz

Are you ready for change?

Learn to Lead The Change