CHI - SQUARE TEST

Need for the test -

To test the promotional policies are uniform or not uniform. So the management can insist

the policies more transparent according to the executive and non executive.

Null hypothesis -

The promotional policies are not uniform according to executive and non executive.

Alternative hypothesis -

The promotional policies are uniform according to executive and non executive.

Factors Samples Samples Total

Job category 32 148 180
Promotional policies 127 53 180
Total 180 180 360

Expected frequency -

E(a) = a+b*a+c
N

E(b) = a+b*b+d
N

E(c) = a+c*c+d
N

E(d) = b+d*c+d
N

E(a) = 28620 = 79.5

360

E(b) = 36180 = 100.5

 360

E(c) = 28620 = 79.5

360

E ( d ) = 36180 = 100.5
360

O - Observation

E - Expected frequency

O E O–E ( O – E )2 ( O – E )2
E

32 79.5 47.5 2256.25 28.34

148 100.5 47.5 2256.25 22.45
127 79.5 47.5 2256.25 28.38
53 100.5 47.5 2256.25 22.45

Chi – square = ∑ ( O- E ) 2 / E = 101.66

Table value for degree of freedom ( r – 1) ( c -1) i.e 1 @ 5 % significant level is 3.841

Since the calculated value is 101.66 > 3.841

Inference:-

Null hypothesis ( Ho) is rejected @ 5% significant level.

Conclusion:-

The promotional policies should be made transparent and uniform according executive

and non executive.