Investopedia

Continue to Site »

Chi Square Statistic

Filed Under »
Dictionary Says

Definition of 'Chi Square Statistic'

A measurement of how expectations compare to results. The data used in calculating a chi square statistic must be random, raw, mutually exclusive, drawn from independent variables and be drawn from a large enough sample. For example, the results of tossing a coin 100 times would meet these criteria.
Investopedia Says

Investopedia explains 'Chi Square Statistic'

As a simple example of how to calculate and use the chi square statistic, consider tossing a coin 100 times. The expected result of tossing a fair coin 100 times is that heads will come up 50 times and tails will come up 50 times. The actual result might be that heads comes up 45 times and tails comes up 55 times. The chi square statistic will show any discrepancies between the expected results and the actual results.

Articles Of Interest

  1.

    What Are The Odds Of Scoring A Winning Trade?

    Just because you're on a winning streak, doesn't mean you're a skilled trader. Find out why.

  2. Regression Basics For Business Analysis

    This tool is easy to use and can provide valuable information on financial analysis and forecasting. Find out how.

  3. The Linear Regression Of Time and Price

    This investment strategy can help investors be successful by identifying price trends while eliminating human bias.

  4. Quants: The Rocket Scientists Of Wall Street

    Blend math, finance and computer skills to command a high - and well deserved - salary.

  5. Calculating The Means

    Learn more about the different ways you can calculate your portfolio's average return.

  6. R-Squared

    Learn more about this statistical measurement used to represent movement between a security and its benchmark.

  7. Mitigating Downside With The Sortino Ratio

    Differentiate between good and bad volatility with the Sortino Ratio.

  8. Quantitative Analysis Of Hedge Funds

    Hedge fund analysis requires more than just the metrics used to analyze mutual funds.

  9. Rule Of 72

    Learn more about this quick approximation that can determine roughly the number of years it'll take your money to double.

  10. How To Use Facebook As A Marketing Tool

    Facebook can be a viable marketing platform for your business. It can even earn you revenue.
comments powered by Disqus
Marketplace
Hot Definitions

  1. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.

  2. Pattern Day Trader

    An SEC designation for traders who trade the same security four or more times per day (buys and sells) over a five-day period, and for whom same-day trades make up at least 6% of their activity for that period.

  3. Cost-Push Inflation

    A phenomenon in which the general price levels rise (inflation) due to increases in the cost of wages and raw materials.

  4. Happiness Economics

    The formal academic study of the relationship between individual satisfaction and economic issues, such as employment and wealth.

  5. Affluenza

    A social condition arising from the desire to be more wealthy, successful or to "keep up with the Joneses." Affluenza is symptomatic of a culture that holds up financial success as one of the highest achievements.

  6. Icarus Factor

    The term Icarus factor describes a situation where managers or executives initiate an overly ambitious project which then fails. Fueled by excitement for the project, the executives are unable to reign in their misguided enthusiasm before it is too late to avoid the failure.
Trading Center