ANALYSE THIS DISCUSSION AND Describe, through an example or two, the use of a contingency table analysis (Chi Square test) in a business research project.

DISCUSSION:A contingency table maps relatable variables together to summarize their relationship. By using the Chi Square test, you will be able to determine whether the contingency table has significance, can be used in aiding the interpretation of the collected data, and to understand if a relationship exists.

Example of a contingency table is a medication to prevent a disease, based on several medications and including a placebo. Null Hypothesis would be that the medications do nothing, and alternative hypothesis is that these medications do something. Chi Square statistic figures out what the expected value would have been, and we can conclude whether the null hypothesis can be thrown out. Chi square statistic would be the squared distance between the observed and the expected divided by the expected. After the conclusion you would calculate the degrees of freedom.

Contingency Table

Med x

Med y

Placebo

Total

# Sick

20

30

30

80

#not Sick

100

110

90

300

Total

120

140

120

380

Based on this data, and a significance level of 10%; we can conclude that the degrees of freedom would be 2 and the Chi Square statistic would be 2.53 and therefor, we wouldn't conclude that the null hypothesis could be removed.