Book Image

Data Analysis with STATA

Book Image

Data Analysis with STATA

Overview of this book

Table of Contents (16 chapters)
Data Analysis with Stata
Credits
About the Author
About the Reviewers
www.PacktPub.com
Preface
Index

Fisher's exact test


Fisher's exact test is utilized when there is a need for a chi-square test, but one or more than one row in your observation dataset have five or less values in terms of frequency. The basic assumption in a chi-square test is that the frequency of the values in the rows of the given dataset is five or more than five. Fisher's exact test does not need this assumption:

tabulate model fridge_type,
exact

Here are the results of this query:

This outcome tells you that fridge_type and model are not statistically related (that is p is equal to 0.652). Fisher's test computes the p-value directly. Here is the mathematical derivation of the fisher's test:

Look at the following assumed data of fridge sales:

Then, the probability and the p value is given by the following formula: