A statistical test that allows one to determine whether observed quantities of a specific characteristic differed from the expected value purely by chance.

Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...

This paper presents the results of a Monte Carlo study of the accuracy of an approximation to the power of the chi-square goodness of fit test with small but equal expected frequencies. Various ...

The chi-square test, likelihood ratio test, and other goodness of fit tests in a family are shown to have monotonic power functions, and hence are unbiased, for testing a simple hypothesis that all ...