Statistical Tests Using Excel: Chi-Square Tests

Introduction

• Presenter: Dr. Joe Snyder
• Topic: Hypothesis testing using chi-square in Excel
• Focus: Contingency tables (summary of rows, columns, counts)

Chi-Square Test Overview

• Purpose: To test hypotheses using contingency tables
• Data Input: Observed frequencies (counts)
• Spreadsheet Capabilities: Handles contingency tables from 2x2 to 10x10
• Data Entry:
  • Light blue cells for data input
  • Yellow area for results
  • Additional entry at cell B34

Example Scenario

• Scenario: Survey data from two hotels (Hotel A and B)
• Question: Are return rates (yes/no) the same between the two hotels?
• Objective: Analyze proportions and identify if there's a statistical difference

Performing Chi-Square Analysis

• Data Example:
  • Hotel A: 110 returns out of 200
  • Hotel B: 35 returns out of 200
• Results:
  • Critical value: 3.8415
  • Chi-square statistic: Much larger than the critical value
  • P-value: Essentially zero, less than alpha (0.05)
  • Conclusion: Reject null hypothesis; significant difference

Alternative Analysis

• Scenario Modification:
  • Hotel A: 100 returns
  • Hotel B: 100 returns
• Observation: No significant difference
• Conclusion: Do not reject null hypothesis; proportions are similar

Chi-Square Test Mechanics

• Calculations:
  • Expected frequencies calculated based on H0 being true
  • Difference values assessed for significance
• Method Consistency: Similar methodology to other one sample tests

Conclusion

• Summary: Enter data, analyze using chi-square, assess significance
• Next Steps: Continue with other videos in the series
• Thank You: Appreciation for following the video series