2 G

By: Likith R Prakash Ashwini S Rao

Chi-square (pronounced ky-square)

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2 Greek notation for chi-square is G

Quantitative measure used to determine whether a relationship exists between two variables Ex: Gender and the year of promotion for a sample of employees. We want to establish whether a relationship exists between gender and year of promotion

Chi-square statistic first shows there is statistical significance

A test of independence assesses whether paired observations on two variables, expressed in a contingency table, are independent of each other o find out whether two or more attributes are associated (related ) or not

A test of goodness of fit establishes whether or not an observed frequency distribution differs from a theoretical distribution. Ex: To test the hypothesis that a random sample of 100 people has been drawn from a population in which men and women are equal in frequency, the observed number of men and women would be compared to the theoretical frequencies of 50 men and 50 women. If there were 44 men in the sample and 56 women, then.

The x2 test of homogeneity is an extension of the chisquare test of independence. Tests of homogeneity are designed to determine whether two or more independent random samples are drawn from the same population or from different populations

For example we may be interested in finding out whether or not university students of various levels i.e., undergraduate, postgraduate PhD feel the same in regard to the amount of work required by their professors i.e., too much, right amount of work or too little work. We shall take the hypothesis that the three samples come from the same population, i.e., the three classifications are homogeneous in so far as the opinion of three different groups of students about the amount of work required by their professors is concerned. This also means there exists no difference in opinion among the three classes of people on this issue.

Even though a chi-square test may show statistical significance between two variables, the relationship between those variables may not be substantively important. Hence there are many measures of association available to help evaluate the relative strength of a statistically significant relationship

The Phi Coefficient denoted by introduced by Karl Pearson is a measure of association for two variables. varies from 0 to 1 or -1 (No, complete & Inverse association) The Phi coefficient is related to the chi-square statistic for a 22 nominal contingency table only.

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Cramer's V (also referred to as Cramer's phi and denoted as V or c) May be used with variables having 2 or more levels Varies from 0 (no association) to 1 (complete association) V may be viewed as a percentage of maximum possible variation between variables In case of 2x2 contingency table V = .

LEVEL OF ASSOCIATION

Verbal Description

COMMENTS

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0.00

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.00 to .15

.10 to .20

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.20 to .25

.25 to .30

Describing Strength of Association Characterizations >.5 high association .3 to .5 moderate association .1 to .3 low association 0 to .1 little if any association
No

Relationship

Knowing the independent variable does not reduce the number of errors in predicting the dependent variable at all.

Not generally useful

Not acceptable

Weak

Minimally acceptable

Moderate

Acceptable

Moderately Strong

.30 to .35

Strong

.35 to .40

Very Strong

.40 to .45

Worrisomely Strong

Either an extremely good relationship or the two variables are measuring the same concept

.45 to .99

Redundant

The two variables are probably measuring the same concept.

1.00

Perfect Relationship.

If we the know the independent variable, we can perfectly predict the dependent variable.

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Describing Strength of Association Characterizations >.5 high association .3 to .5 moderate association .1 to .3 low association 0 to .1 little if any association

It is interpreted as a measure of the relative (strength) of an association between two variables. The coefficient will always be less than 1 and varies according to the number of rows and columns.

Where N is total sample size

Phi: Only when both nominal variables have exactly 2 possible values. C: When there are 3 or more values for each nominal variables. (Rows = Columns) V: Number of possible values for variables is not equal. (Rows Columns)

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