Fisher’s Exact Test – Fresh Take

  • Check the conditions for Fisher’s Exact Test
  • Explain the relationship of two qualitative binary variables using Fisher’s Exact Test

[latex]\chi^2[/latex] Test for Independence vs. Fisher’s Exact Test

We use the [latex]\chi^2[/latex] test for independence to decide whether two variables (factors) are independent or dependent. In this case, there will be two qualitative survey questions or experiments, and a contingency table will be constructed. The goal is to see if the two variables are unrelated (independent) or related (dependent).

The null and alternative hypotheses are:

  • [latex]H_0[/latex]: The variables (factors) are independent.
  • [latex]H_A[/latex]: The variables (factors) are dependent.

Next, the conditions for the test of independence must be checked. It is important to know when you can or can not perform the [latex]\chi^2[/latex] test of independence.

  • Condition # 1: Independence/Randomness Condition: The [latex]\chi^2[/latex] test assumes that observations are independent. This means that the outcome for one observation is not associated with the outcome of any other observation.
  • Condition # 2: Large Sample Sizes Condition: The sample sizes need to be large enough so that the expected count in each cell is at least five.

Question:  So, what happens if one or more of the expected counts is less than 5? This means that the large sample sizes condition is violated, and therefore [latex]\chi^2[/latex] test of independence cannot be used in this case.

This is when Fisher’s Exact Test comes into play. You would then want to consolidate the contingency table to a [latex]2 \times 2[/latex] contingency table and check the condition again.

Fisher’s Exact Test (also known as Fisher’s Exact Test of Independence) is a statistical significance test used in the analysis of a [latex]2 \times 2[/latex] contingency table.

So, the null and alternative hypotheses for Fisher’s Exact Test are:

  • [latex]H_0[/latex]: The two variables (factors) are independent.
  • [latex]H_A[/latex]: The two variables (factors) are dependent.

[Trouble viewing? Click to open in a new tab.]