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Chapter 9

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**preview**shows half of the first page. to view the full**2 pages of the document.**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

calculator.

Explain what null hypothesis the 𝑋2 statistic tests in a speciﬁc two-way table.

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