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Investments glossary

Chi-Square (χ2) Statistic Definition

A chi-square (χ2) statistic is a test that measures how expectations compare to actual observed data (or model results). The data used in calculating a chi-square statistic must be random, raw, mutually exclusive, drawn from independent variables, and drawn from a large enough sample. For example, the results of tossing a coin 100 times meet these criteria.

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