Chi Square Test
(Also called Contingency Analysis)
Purpose
To measure the degree of disagreement between the observed data and the null hypothesis,
use when both variables are CATEGORICAL and you want to know whether there is a
correlation between them.
Assumptions
- there are n random samples or trials
- there are c (and r) possible outcomes for each trial
- the probabilities of the c (and r) outcomes remain the same between
trials
- the trials are independent
- the sample size, n, is large enough so that for every cell, the expected
cell count, E(n), will be > 1 (as with most statistical tests,
large sample sizes yield more reliable results!)
How It Works
- 1 x c table: Suppose c = 3. If the null hypothesis
is true then p(c1) = p(c2) = p(c3)
= 1/3. If the null hypothesis is false, then at least one of the proportions exceeds
1/3 (a preference exists). Thus, our OBSERVED values are the data, while the EXPECTED
values all equal n/c. (In this case, E(n) = n/3.)
r x c table: Suppose c = 3 and r = 2. Make a data table
that includes row totals and column totals. This data table contains the OBSERVED
values. We can use the row and column totals to calculate the data values we would
expect to get if there were no correlations between the variables. The expected
values are equal to the ratio of the product of the row total and column total to
the total number of samples:
E(nrc) = (row total)(column total)
(total sample size)
- We can use this formula to make a second table to hold the expected values:
Calculate the test statistic, χ2, as follows:

- Compare the calculated χ2 value, with
c 1 degrees of freedom for a table with only 1 row and (c
1)(r 1) degrees of freedom for a table with 2 or more rows, to the
critical χ2 value from the Chi-square distribution table at the chosen
level of significance and decide whether to accept the null hypothesis. The farther
the observed numbers are from their expected values, the larger χ2
will become. Therefore, large values of χ2 imply that the null hypothesis
is false.
* Reject the null hypothesis when: calculated χ2 value > critical
χ2 value