CHI-SQUARE

Chi square a simple non parametric test of significance, suitable for nominal data where observation can
be classified into discrete categories and treated as frequencies. It’s a statistic used to test the degree of
agreement between the data actually obtained and that expected under a particular hypothesis (e.g.,
the null hypothesis)

 Nominal or categorical data is for mutual exclusive, but not ordered, categories.
 Non parametric - Nonparametric tests are also referred to as distribution-free tests. These tests
have the obvious advantage of not requiring the assumption of normality or the assumption of
homogeneity of variance. They compare medians rather than means and, as a result, if the data
have one or two outliers, their influence is negated.

The formula for chi square

O = observed frequency

e= expected frequency

∑= the summation over all the

categories we are measuring

In calculating X2, we need to enter our observed and expected data into a table of cells. The cells are
filled with the data on the lines of the following model:

o e o = observed data

e = expected data

(o – e) (o – e)2

A relatively large chi square should indicate that the Es differed from the Os than is likely by chance. As
to how large a value of chi square is needed to reject null hypothesis of no significant association
between variables, we compare it to a table of distribution.
 d.f. = degrees of
freedom

d.f = n-1

Two major uses of

chi-square:

1. As a goodness-
of-fit test
 Tells us how well an observed distribution fits a hypothesised or theoretical distribution.
2. As a cross tabulation between two categories (independence)
 Can be divided into two or more subcategories
 2X2 contingency table is a special case
o There are two variables, each divided into two categories

Restrictions in the use of chi square

1. X2 is more appropriate for analysis of date that are classified as frequency of occurrence within
categories. It must be used on frequencies only, not on percentages.
2. Nominal data arranged into categories for a chi square analysis, these categories must be
mutually exclusive categories, which means that each response cn be classified into only one
cell.
3. When there are multiple categories, larger samples are needed.
4. X2 test is sensitive to difference but not direction of difference; it is inherently two-tailed. Only
be inspection of the obtained data can the direction be determined.