When Should You Use Fisher’s Exact Test?

Statistical tests help understand data relationships. Fisher’s exact test is a specialized tool for analyzing specific data. It determines if a significant association exists between two distinct characteristics or categories within a dataset. This test is valuable when other common statistical methods are not appropriate.

The Foundation: Categorical Data and Contingency Tables

Fisher’s exact test is designed to work with categorical data, which are observations that can be sorted into distinct groups or categories. These categories do not have a numerical order and can include classifications like “yes” or “no,” “male” or “female,” or “treatment” versus “control.” For instance, if a study examines whether a new drug improves symptoms, the drug received (treatment/placebo) and the outcome (symptom improved/not improved) would both be categorical variables.

To organize this type of information, researchers often use a contingency table, also known as a cross-tabulation or two-way table. This table displays the frequencies, or counts, of observations that fall into each combination of categories for two variables. A common format for Fisher’s exact test is the 2×2 contingency table, which compares two groups on two possible outcomes. For example, a 2×2 table might show the number of patients who received a drug and improved, those who received the drug and did not improve, and the same outcomes for a placebo group. Each cell in the table contains the count for a specific combination of the two categorical variables.

When Fisher’s Exact Test is the Right Choice

Fisher’s exact test becomes the preferred statistical tool under specific conditions, primarily when dealing with limited data. It is particularly well-suited for analyzing 2×2 contingency tables that involve small sample sizes. A “small” sample often refers to situations where the expected number of observations in any cell of the table is low, commonly considered to be less than five.

This test is frequently applied in studies where obtaining a large number of participants or observations is challenging. Examples include pilot studies with limited enrollment, research on rare diseases, or investigations involving very specific populations that are difficult to recruit. When data collection is expensive or time-consuming, leading to sparse datasets, Fisher’s exact test provides a robust method for analysis.

Why “Exact” Matters for Small Data Sets

The term “exact” in Fisher’s exact test refers to its ability to calculate the precise probability of observing the given data, or data more extreme, assuming there is no association between the variables. This calculation does not rely on approximations. Unlike some other statistical tests that use estimated probabilities, Fisher’s exact test computes the true probability directly.

Traditional approximate methods, such as the Chi-squared test, rely on assumptions that may not hold true when sample sizes are small or when the expected cell counts are low. When these assumptions are violated, approximate tests can produce inaccurate results, potentially leading to incorrect conclusions about the data. The exact nature of Fisher’s test mitigates this risk, providing a more reliable and trustworthy outcome in situations with limited data.

Fisher’s Exact Test Versus Chi-Squared

Both Fisher’s exact test and the Chi-squared test are used to analyze associations between categorical variables presented in contingency tables. While they share this common goal, their suitability depends on the characteristics of the data. The primary distinction between the two tests lies in their handling of sample size and expected cell counts.

The Chi-squared test is generally appropriate for larger sample sizes because its underlying approximations are more valid under those conditions. In contrast, Fisher’s exact test is the more suitable alternative when the assumptions for the Chi-squared test, particularly regarding sufficient expected cell counts, are not met due to small sample sizes. For larger datasets, the results from both tests tend to be very similar. A practical guideline suggests that if any expected cell count in a 2×2 table is less than five, Fisher’s exact test should be chosen; otherwise, the Chi-squared test is typically acceptable.