Used for comparison of two classifications schemes, which may each have multiple categories
Purpose is to determine the probability that observed data are (or are not) consistent with the hypothesis H0: the probability of outcomes in the different groups is the same
Because T is derived from observed-expected difference, the larger the T, the more different the tables are, and the less likely H0
In order to calculate the significance level, we need to evaluate the probability that the observed table was due to random sampling, which is related to the size of T. We also need to evaluate the probability of all the other possible tables that could have been observed (again, same as in Fisher's test)
When H0 is true, the probability distribution of T is approximately the same as the probability distribution for the Χ2 function
We can therefore approximately determine the probability of observed T by evaluating the Χ2 function at the T level (by looking it up in a table)
Because these are approximations, the table typically gives critical values:
Χ2 for 2x2 Table
Probability
0.25
0.10
0.05
0.01
0.005
0.001
T
1.323
2.706
3.841
6.635
7.879
10.83
This is the probability that the observed outcome (and any possible outcomes less likely than this one) occurred due to random sampling only