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Chapter 9

MGCR 271 Chapter Notes - Chapter 9: Null Hypothesis

Management Core
Course Code
MGCR 271
Glenn Zabowski

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MGCR 271 Business Statistics
Chapter 9: Inference for Two-Way Tables
Chi-Square Test
The chi-square test is one of the most common statistical procedures because two-way tables
of counts are frequently constructed in practice.
The central idea is always to ask if there is some relationship between the column categories
and the row categories.
The chi-square test assesses the statistical significance of the column-row relationship but does
not by itself tell us the nature or size of the relationship.
Two-Way Tables
Arrange data on two categorical variables measured on the same group of individuals in a two-
way table of counts for the possible outcomes.
Use percentages to describe the relationship between two categorical variables, starting from
the counts in a two-way table.
Interpreting Chi-Square Tests
Locate expected cell counts, the 𝑋2 statistic, and its 𝑃-value in output from your software or
Explain what null hypothesis the 𝑋2 statistic tests in a specific two-way table.
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