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Chi Square Test

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This lesson explains how to conduct a chi-square goodness of fit test. The test is applied when

you have one categorical variable from a single population. It is used to determine whether

sample data are consistent with a hypothesized distribution.

For example, suppose a company printed baseball cards. It claimed that 30% of its cards were

rookies; 60%, veterans; and 10%, All-Stars. We could gather a random sample of baseball cards

and use a chi-square goodness of fit test to see whether our sample distribution differed

significantly from the distribution claimed by the company. The sample problem at the end of the

lesson considers this example.

**When to Use the Chi-Square Goodness of Fit Test
**

The chi-square goodness of fit test is appropriate when the following conditions are met:

The sampling method is simple random sampling.

The variable under study is categorical.

**The expected value of the number of sample observations in each level of the variable is
**

at least 5.

**This approach consists of four steps: (1) state the hypotheses, (2) formulate an analysis plan, (3)
**

analyze sample data, and (4) interpret results.

**State the Hypotheses
**

Every hypothesis test requires the analyst to state a null hypothesis (H0) and an alternative

hypothesis (Ha). The hypotheses are stated in such a way that they are mutually exclusive. That

is, if one is true, the other must be false; and vice versa.

For a chi-square goodness of fit test, the hypotheses take the following form.

H0: The data are consistent with a specified distribution.

Ha: The data are not consistent with a specified distribution.

Typically, the null hypothesis (H0) specifies the proportion of observations at each level of the

categorical variable. The alternative hypothesis (Ha) is that at least one of the specified

proportions is not true.

Often. n is the total sample size.Formulate an Analysis Plan The analysis plan describes how to use sample data to accept or reject the null hypothesis. The P-value is the probability of observing a sample statistic as extreme as the test statistic. and demonstrated in the sample problem at the end of this lesson. Test statistic. and the P-value associated with the test statistic.10. The chi-square goodness of fit test is described in the next section. The test statistic is a chi-square random variable (Χ2) defined by the following equation. use the Chi-Square Distribution Calculator to assess the probability associated with the test statistic. Test method.05. Expected frequency counts. and pi is the hypothesized proportion of observations in level i. expected frequency counts. Analyze Sample Data Using sample data. P-value.01. The expected frequency counts at each level of the categorical variable are equal to the sample size times the hypothesized proportion from the null hypothesis Ei = npi where Ei is the expected frequency count for the ith level of the categorical variable. researchers choose significance levels equal to 0. or 0. and Ei is the expected frequency count for the ith level of the categorical variable. test statistic. Use the degrees of freedom computed above. Since the test statistic is a chi-square. Use the chi-square goodness of fit test to determine whether observed sample frequencies differ significantly from expected frequencies specified in the null hypothesis. 0. but any value between 0 and 1 can be used. The plan should specify the following elements.1 .Ei)2 / Ei ] where Oi is the observed frequency count for the ith level of the categorical variable. Interpret Results . Significance level. The degrees of freedom (DF) is equal to the number of levels (k) of the categorical variable minus 1: DF = k . find the degrees of freedom. Degrees of freedom. Χ2 = Σ [ (Oi .

and (4) interpret results. DF = k . this involves comparing the P-value to the significance level. Using sample data. and rejecting the null hypothesis when the P-value is less than the significance level. and 5 All-Stars. 60% veterans. (3) analyze sample data.05 level of significance.10 = 10 Χ2 = Σ [ (Oi .If the sample findings are unlikely. we compute the degrees of freedom. and the chi-square test statistic. and 10% are All-Stars. 45 veterans. respectively.60 = 60 (E3) = 100 * 0. Suppose a random sample of 100 cards has 50 rookies.Ei)2 / Ei ] . Solution The solution to this problem takes four steps: (1) state the hypotheses.1 = 2 (Ei) = n * pi (E1) = 100 * 0.05. the researcher rejects the null hypothesis. and All-Stars is 30%. the expected frequency counts. (2) formulate an analysis plan. the significance level is 0. Is this consistent with Acme's claim? Use a 0.30 = 30 (E2) = 100 * 0. Typically. We work through those steps below: State the hypotheses. Test Your Understanding Problem Acme Toy Company prints baseball cards. veterans. o Alternative hypothesis: At least one of the proportions in the null hypothesis is false. we determine the P-value. given the null hypothesis.1 = 3 . Formulate an analysis plan. The company claims that 30% of the cards are rookies. 60% and 10%. Analyze sample data. Applying the chi-square goodness of fit test to sample data. Based on the chi-square statistic and the degrees of freedom. The first step is to state the null hypothesis and an alternative hypothesis. we will conduct a chi-square goodness of fit test of the null hypothesis. o Null hypothesis: The proportion of rookies. For this analysis.

The P-value is the probability that a chi-square statistic having 2 degrees of freedom is more extreme than 19.33 + 3.58) = 0. n is the number of observations in the sample.10)2 / 10 ] Χ2 = (400 / 30) + (225 / 60) + (25 / 10) = 13.50 = 19. and each level of the categorical variable had an expected frequency count of at least 5. and Χ2 is the chi-square test statistic. Specifically. the approach is appropriate because the sampling method was simple random sampling. k is the number of levels of the categorical variable. Interpret results. Note: If you use this approach on an exam. we cannot accept the null hypothesis.05).58 where DF is the degrees of freedom. Ei is the expected frequency count for level i.60)2 / 60 ] + [ (5 . Since the P-value (0.58.Χ2 = [ (50 .75 + 2. Oi is the observed frequency count for level i.30)2 / 30 ] + [ (45 .0001. you may also want to mention why this approach is appropriate.0001) is less than the significance level (0. We use the Chi-Square Distribution Calculator to find P(Χ2 > 19. the variable under study was categorical. .

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