CHAPTER 15

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Chi-Square Tests

You learned about the chi-square distribution when we discussed confidence intervals for the variance and standard deviation in Chapter 8. Another contribution of Karl Pearson, the chi-square distribution has proven to be quite versatile. We use chi-square tests for determining goodness of fit and for determining the association or lack thereof for cross-tabulated categorical variables.

Earlier in the book, in Chapter 2, I used the example of Benford’s Law to detect fraudulent activity by a refund officer. Although we did not discuss it in much depth at that time, we did a chi-square test of goodness of fit to determine ...

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