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Where is it used?
Test of independence:
A chi-square test for independence compares
two variables in a contingency table to see if
they are related. It tests to see whether
distributions of categorical variables differ from
each another.

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The Chi-Square Test of Independence determines
whether there is an association between
categorical variables (i.e., whether the variables
are independent or related). It is a nonparametric
test. This test utilizes a contingency table to
analyze the data.
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A contingency table (also known as a cross-
tabulation, crosstab, or two-way table) is an
arrangement in which data is classified according
to two categorical variables. The categories for
one variable appear in the rows, and the
categories for the other variable appear in
columns.

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Null Hypothesis:
“Variable 1” is independent of “Variable 2”
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Alternative Hypothesis:
"Variable 1” is not independent of “Variable 2"

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The calculated Χ2 value is then compared to the
critical value from the Χ2 distribution table with
degrees of freedom df = (R - 1)(C - 1) and chosen
confidence level. If the calculated Χ2 value >
critical Χ2 value, then we reject the null
hypothesis.

We can also calculate the p-value using the test

statistic and if p-value < chosen confidence level,
we reject the null hypothesis.

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