A chi-square test is a statistical test that is used to compare observed and

expected results. The goal of this test is to determine whether a difference between
observed and expected data is due to chance or to a relationship between the variables
under consideration. As a result, the chi-square test is an excellent choice for assisting
us in better understanding and interpreting the relationship between our two
categorical variables. Chi-square tests allow us to compare experimentally verified and
predicted frequency bands in an objective manner, as it is not always possible to
ascertain whether they are "different enough" to be considered statistically significant
just by looking at them. In this case, statistical evidence suggests that the distinctions
are not due to chance alone but may be indicative of other processes at work. 

Goodness of Fit - Goodness-of-Fit tests help determine if observed data aligns

with what is expected. Decisions can be made based on the outcome of the hypothesis
test conducted. For example, a retailer wants to know what product offering appeals to
young people. The retailer surveys a random sample of old and young people to
identify which product is preferred. Using chi-square, they identify that, with 95%
confidence, a relationship exists between product A and young people. Based on these
results, it could be determined that this sample represents the population of young
adults. Retail marketers can use this to reform their campaigns. The chi-square tests
whether relationships exist between categorical variables and whether the sample
represents the whole. It estimates how closely the observed data mirrors the expected
data, or how well they fit.