Chi Square Test Goodness of Fit
Chi square test can be used to find out how well the theoretical distribution fit with the empirical distribution of observed distribution obtained from sample data. When chi square test is used as a test of goodness of fit you will be taking the followings steps:
- Set up null and alternative hypothesis.
- Decide level of significance for rejection of null hypothesis.
- Draw a random sample of observations from the relevant population.
- Derive theoretical distribution under the assumption that null hypothesis is true.
- Compare observed frequencies with expected frequencies with the help of test.
- If computed X2 is less than the table value at a certain level of significance the fit the is considered to be good. On the other hand if the calculated value exceeds the table value the fit is considered poor.