Business Statistics

Hypothesis Testing for

Categorical Data

(Chi-Square Test)

The grand aim of all science is to cover the greatest number of empirical facts by logical

deduction from the smallest number of hypotheses or axioms.

–Albert einstein

13

LEAR NING OBJECTIVES

Upon completion of this chapter, you will be able to:

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n Understand the concept of chi-square statistic and

chi-square distribution

n Understand the concept of chi-square goodness-of-fit test

n Understand the concept of chi-square test of independence:

two-way contingency analysis

n Understand the concept of chi-square test for population

variance and chi-square test of homogeneity

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