mytest > help > Part 2. MM4XL Tools > 2. Analytical Tools > Business Formulas > mmCHIp, Chi Squared Test

Business Formulas

mmCHIp, Chi Squared Test

Category: Market Research & Statistics

The Chi squared test can be used to test the independence of two criteria of classification. The assumption of independence is typically tested in cross tables, also called contingency tables, in order to verify whether an association exists between the tabulated variables. In probability theory, to say that two events are independent intuitively means that the occurrence of one event makes it neither more nor less probable that the other occurs. For example, the event of getting a 6 the first time a die is rolled and the event of getting a 6 the second time are independent.

Business analysis formulas for Excel. Marketing tool for professionals

Where:

X2 = Chi squared or Pearson's cumulative test statistic
Oi = an observed frequency
Ei = an expected (theoretical) frequency, asserted by the null hypothesis
n = the number of cells in the table

Syntax

mmCHIp(Observed, Optional Probability, Optional Full_Report)

Observed Range with the counts of a contingency table
Probability Optional - The probability level at which you want to compute the chi square
Full_Report Optional - TRUE shows a full report, FALSE shows only the chi square probability

Example

See example file "Business Formulas.xls", sheet "mmCHIp".

Business analysis formulas for Excel. Marketing tool for professionals

Business analysis formulas for Excel. Marketing tool for professionals

Note: This is an Array Function (curly brackets { } ). To enter an array function: (1) select the range where you want to enter it, for instance, A28:B33; (2) type the formula; (3) press CTRL+SHIFT+ENTER

Related functions
  • mmBASS
  • mmCODING
  • mmCSII
  • mmCSIW
  • mmDBAVG
  • mmDBCOUNT
  • mmDBSUM
  • mmEXPECT
  • mmSAMPLE
  • mmSAMPLEMIN
  • mmSIGNIF
Related MM4XL software tools
  • CrossTab
  • Sample Manager
  • Proportion Analyst
  • Variation Analyst
  • Brand Mapping
Source
Wikipedia: http://en.wikipedia.org/wiki/Chi-squared_test
Lifetime license:

Price: euro

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