The Chi-Square (χ2) test is a nonparametric test used to test hypotheses about frequency distributions across categories. It can test for independence and compare variances. The key steps are: 1) Calculate expected frequencies under the null hypothesis, 2) Calculate the differences between observed and expected frequencies, 3) Sum the squared differences divided by the expected values to get the chi-square statistic, 4) Compare this statistic to critical values from the chi-square distribution to determine significance. An example tests if vaccination prevents smallpox attacks, finding the results do not support independence between vaccination status and attacks, suggesting vaccination is effective.