The chi-square test identifies significant differences between observed and expected frequencies in categorical data to determine if differences are due to chance or some other factor. There are different types of chi-square tests, but the most common is the Pearson chi-square test, which can test for independence between categories or goodness of fit to expected values. It requires categorical or numerical data, independent observations, and adequate sample sizes. The test involves constructing a table of observed and expected frequencies, calculating the (O-E) values, summing the (O-E)2/E values to get the chi-square statistic, and comparing it to critical values to determine if differences are statistically significant.