Monday, 15 September 2014

Chi Square Test

The chi square test comprises of comparing the variance of two groups. One group is that being investigated and the other group is the given group. Closeness in variance values of the two groups suggests homogeneity and difference suggests heterogeneity.
To perform a chi squared test the following conditions should hold good:
v  Quantitative data
v  The data observations should be made on random basis
v  A sample size of minimum 10
v  More than one group
v  Independent observations
v  Using all the observations
v  Linear constraints
Chi square test is a non-parametric test without any rigid assumptions regarding the type of population, only information regarding the degrees of freedom is required to carry out this test, the degree of freedom is determined by the sample size. The test consists of forming a hypothesis, the hypothesis is rejected or accepted on the basis of the closeness of actual chi square value with the tabular chi square value, if the two values are close, working hypothesis is accepted, working hypothesis is rejected and its reverse is accepted, if the chi square values significantly differ.
Chi square test has many uses. It can be used to infer goodness of fit, such as whether a sample is representative of a population or not, whether a produced lot confirms with the established quality standard, whether a medicine is effective as other medicines or not. Information generated through chi square test enables in making decisions related to sample size and design, quality conformance and enhancement, in comparing the difference between expected and observed frequencies. Frequency means the number of times a particular observation occurs and its comparative study is used in many fields for example in marketing to study consumer preferences and tuning the marketing offer as per their preferences. Using frequency method qualitative data can be assigned quantities (frequencies) and chi square can hence also be indirectly used on qualitative data as well.