Seven Proofs of the Pearson Chi-Squared Independence Test and its Graphical Interpretation

19 Pages Posted: 12 Sep 2018

See all articles by Eric Benhamou

Eric Benhamou

Université Paris Dauphine; AI For Alpha; EB AI Advisory; Université Paris-Dauphine, PSL Research University

Valentin Melot

Ecole Normale Supérieure (ENS) d'Ulm

Date Written: August 29, 2018

Abstract

This paper revisits the Pearson Chi-squared independence test. After presenting the underlying theory with modern notations and showing new way of deriving the proof, we describe an innovative and intuitive graphical presentation of this test. This enables not only interpreting visually the test but also measuring how close or far we are from accepting or rejecting the null hypothesis of non independence.

Keywords: causality, Pearson correlation coecient, graphical heat map

JEL Classification: 62E10, 62E15

Suggested Citation

Benhamou, Eric and Melot, Valentin, Seven Proofs of the Pearson Chi-Squared Independence Test and its Graphical Interpretation (August 29, 2018). Available at SSRN: https://ssrn.com/abstract=3239829 or http://dx.doi.org/10.2139/ssrn.3239829

Eric Benhamou (Contact Author)

Université Paris Dauphine ( email )

Place du Maréchal de Tassigny
Paris, Cedex 16 75775
France

AI For Alpha ( email )

35 boulevard d'Inkermann
Neuilly sur Seine, 92200
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EB AI Advisory ( email )

35 Boulevard d'Inkermann
Neuilly sur Seine, 92200
France

Université Paris-Dauphine, PSL Research University ( email )

Place du Maréchal de Lattre de Tassigny
Paris, 75016
France

Valentin Melot

Ecole Normale Supérieure (ENS) d'Ulm ( email )

29 rue d'Ulm
Paris, 75005
France

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