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MLS-C01 Exploratory Data Analysis Practice Question

A machine learning engineer is analyzing a dataset with a mix of categorical and numerical features. The engineer wants to understand the correlation between categorical features and the target variable. Which statistical test is most appropriate for measuring association between a categorical feature and a binary target?

Answer choices

Why each option matters

Answer the question above first, then reveal the full breakdown to understand why each option is right or wrong.

Correct answer & explanation

Chi-squared test of independence

The Chi-squared test of independence is used to determine if there is a significant association between two categorical variables, which is applicable here. Option A is wrong because Pearson correlation is for continuous variables. Option B is wrong because ANOVA is for comparing means across groups, but assumes continuous target. Option D is wrong because Mutual Information can be used but is not a statistical test with a p-value.

Answer analysis

Option-by-option breakdown

For each option: why learners choose it and why it is or isn't the right answer here.

  • Pearson correlation coefficient

    Why it's wrong here

    Pearson correlation is for continuous variables, not categorical.

  • ANOVA (Analysis of Variance)

    Why it's wrong here

    ANOVA compares means of a continuous variable across categories, not for two categorical variables.

  • Chi-squared test of independence

    Why this is correct

    Chi-squared test tests association between two categorical variables.

  • Mutual information

    Why it's wrong here

    Mutual information measures dependence but does not provide a hypothesis test.

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