What is a Goodness of Fit Test?
- Content Type:
- Glossary
Goodness of Fit Test Definition
A measure of how well observed data conform to a specified, expected, or theoretical probability distribution.
The goodness of fit test is a statistical measure used in marketing research to assess how well an observed distribution of data conforms to a specified, expected or theoretical probability distribution. It determines whether the differences between observed and expected values are significant or happen because of random chance. The test helps researchers to avoid making flawed decisions because of inaccurate models. What’s more, it makes certain that data-driven insights are reliable and representative of the real-world scenarios, which can improve marketing campaigns and business plans.
Who relies on a goodness of fit test?
Marketing analysts and other related professionals, data scientists and researchers rely on a goodness of fit test to validate models, assess chosen distributions and ensure the accuracy of predictive models.
Why should I care about the goodness of fit test?
The goodness of fit test makes certain the marketing decisions are based on data accuracy. The analysis validates marketing and business models and distributions, thus adding to the confidence of marketing strategies, budget allocations and business projections.