Valid Application:
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If there are only two cells, expected frequency in each cell should be 5 or more ❌
This is a valid condition for applying χ², not a restriction. -
Samples of at least 50 observations must be drawn randomly from the population ❌
Random sampling and adequate sample size are requirements, not conditions for non-application. -
Data should be expressed in original units rather than ratio or percentage ❌
Chi-square is applied to frequency data, not ratios or percentages—this is again a valid condition.
One of the key limitations/conditions for applying the χ² (chi-square) test is related to expected frequencies:
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When the number of cells is more than two, not more than 20% of the cells should have expected frequencies less than 5.
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If more than 20% of the cells have expected frequencies below 5, the chi-square test should NOT be applied, as the approximation becomes unreliable.
Hence, this condition represents a situation where χ² should not be used.