The Chi-square test is a non-parametric test used to determine if an observed frequency distribution differs from an expected theoretical distribution. It is calculated as the sum of (observed - expected)^2 / expected. The document provides an example of using a Chi-square test to test the independence of quinine treatment and fever occurrence. The results show the calculated Chi-square value is greater than the table value, so the null hypothesis that quinine is not effective is rejected in favor of the alternative that quinine is effective in reducing fever.