The Basics of Chi-Squared Tests

Background

Chi-squared tests can be a powerful tool for lawyers dealing with economic damages in litigation cases.  A Chi-Squared Test is a statistical test to determine if there are differences between two populations (i.e., sets of data).  Chi-Squared tests are used to test based on categorical data (e.g., gender, race).  Other tests are used for numerical data (e.g., age, height).  The chi-squared test is a rigorous analytical tool that can allow lawyers and expert witnesses to support their arguments with empirical analysis.  The rest of this article will provide examples of how a Chi-Squared test can be used in a litigation context.

Practical Applications – Employment Disputes

In employment law cases, especially class action suits, the case can depend on intricate datasets requiring detailed and nuanced interpretations.  Lawyers need a means to present such data in a clear, concise manner that can be easily understood by the triers of fact.

For example, a Chi-Squared test can be used in a case alleging discrimination in a company’s hiring practices based on gender.  With the benefit of discovery, you have data on the number of male and female applicants who applied for a job at the company and whether they were hired or not.  A Chi-Squared test could tell you whether the genders of those hired was statistically different from those who applied. 

Similar Chi-Squared tests could be used to demonstrate the same for racial or religious discrimination, we well as wage discrimination, promotion and termination.

Practical Applications – Product Liability

A Chi-Squared test can be used to assist in establishing liability in a product liability case.  Our client assembled their product using off-the-shelf components purchased from suppliers.  We had data regarding their sales of different products using different parts, and compared those using a Chi-Squared test against their products being returned, repaired or replaced.  Once summarized and tested, the chis squared test  concluded that the defective products included parts for a specific supplier more frequently than would have been expected.

Practical Applications – Discrimination in Jury Selection

During jury selection, lawyers can exclude potential jurors from being empaneled. There are rules governing this process (which are beyond the scope of the current article); however, potential jurors may not be excluded based solely on their race.  Part of the process to support a Batson Challenge (named on the US Supreme Court case that created the rule) or after trial as part of appeal, can include a Chi-Squared test to show that the potential jurors being excluded were being excluded based on race.

What should I do?

Hire an expert witness (like us).  As an expert, we will save you time and money because:

  1. We have performed hundreds of statistical tests to support our conclusions, including Chi-Squared.
  2. We are intimately familiar with the data sources used in these analyses and combine this information with informed financial analysis.
  3. We have experience defending these calculations in deposition and at trial.  We can provide expert witnesses testimony in a simple, efficient manner so that triers of fact can understand otherwise complicated subjects.

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