From the course: AI and Data-Driven Decision-Making for HR

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The chi-squared test to understand relationships

The chi-squared test to understand relationships

From the course: AI and Data-Driven Decision-Making for HR

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The chi-squared test to understand relationships

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Before we start learning about the predictive power of the chi-squared test, I want to confuse you with the term categorical. If you see this in some output or report from your data analyst, ask the person, what the heck are you talking about? You must be confident asking questions when anything is confusing or it'll be hard to learn anything new. This is especially true when it comes to data analysis. The answer for categorical as it relates to the chi-squared test, is that it's used to determine if there is a relationship between two non-numeric variables, rather than two sets of numbers. For example, does gender or the person's department affect their salary or their job satisfaction? Now, Gallup's Q12 survey is one many companies use to track employee satisfaction. With these results, a chi-squared test can help determine if there is a relationship between different departments, and how employees respond to specific survey questions. The Gallup Q12 is a 12-question employee…

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