The chi-square test of a contingency table is used to determine if there is enough evidence to infer that two nominal variables are related, and to infer that differences exist among two or more populations of nominal variables.

The statement is true. The chi-square test is commonly used in statistical analysis to determine the independence between two categorical variables, or to test the hypothesis that there is an association or relationship between them. It can also be used to compare the distribution of multiple groups of categorical data.