Question

What is the ‘chi square’ test? Explain its applications in Marketing Research.

Answer 1

A chi-squared test, also written as χ² test, is any statistical hypothesis test where the sampling distribution of the test statistic is a chi-squared distribution when the null hypothesis is true.

Market Researchers use the Chi-Square test when they find themselves in one of the following situations:

They need to estimate how closely an observed distribution matches an expected distribution. This is referred to as a “goodness-of-fit” test.

They need to estimate whether two random variables are independent.