Texas A&M University (TAMU) MATH140 Mathematics for Business and Social Sciences Final Practice Exam

The chi-square test is specifically designed to assess whether there is a significant association between categorical variables. This statistical test evaluates how observed frequencies of occurrences in different categories compare to expected frequencies, which are calculated under the assumption that no association exists between the variables.

For example, it is commonly used to determine if the distribution of a categorical variable differs across different groups or if two nominal variables are independent of one another—such as testing if gender is associated with preference for a particular product.

The other options reflect different statistical approaches: determining differences in continuous variables often involves t-tests or ANOVA; measuring associations between two numerical variables typically requires correlation or regression analysis; and comparing means across multiple groups also utilizes ANOVA. These methodologies are distinct from the chi-square test, which focuses solely on categorical data.