 McNemar's test

For paired binary observations $(C_i,M_i)$, let $b$ count pairs $(1,0)$ and $c$ pairs $(0,1)$. Under the null hypothesis of equal marginal event probabilities, these discordant outcomes have equal probabilities. Conditional on $b+c$, $b$ has the binomial distribution $\mathrm{Bin}(b+c,1/2)$, giving an exact test. For enough discordant pairs, $(b-c)/\sqrt{b+c}$ has an approximate standard normal distribution, or its square has an approximate one-degree-of-freedom chi-squared distribution. Concordant pairs provide no information about the direction of the marginal difference. If there are no discordant pairs, there is no directional information and the divided statistic is not computed. The pairing and independence between pairs are essential; the usual independent-two-sample formula is not a paired test.