How to compare two groups on a set of dichotomous variables? I have two groups (G1, n=10; G2, n = 10) each representing a separate condition.
Participants in each group  answered 20 questions and each question is a dichotomous variable coded 0 and 1 (VDD).
I want to compare the group 1 with group 2.
I am having some trouble understanding if I have it right, for every participants of both group, to mean their answer (since the variable is dichotomous). It would give me a probability to get an answer more than the other one I guess, but I don't know if I have the right to do that.
 A: Items measure same thing


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*If your items measure the same thing (e.g., they are all exam questions, or all measuring the presence or absence of a particular characteristic), then you would typically create an overall score for each participant (e.g., you could get the mean score for each participant). With a 20-item test you have 21 different possible scale values, and that's probably enough to use an independent groups t-test as a reasonable option for comparing group means.


Comparing individual items


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*If you just want to compare the two groups on each item, you could do a chi-square test for each item.

*However with a sample size of 10 in each group, and 20 questions, you are probably going to run into issues related to multiple significance testing (e.g., lots of significance tests, and a high probability of finding an effect by chance, assuming there is no true effect).

A: You have a couple of different approaches that depend upon how you think about the responses to your twenty questions. 
If the responses to the question reveal different types of information about the respondents, you may want to think about each particular set of responses as a multivariate random variable. 
In this case, you should first create a frequency table of groups by questions. Given the small sample sizes, you should not likely use Pearson's Chi-Square Test of Independence. You can use Fisher's exact test.
If the responses to the questions are all revealing the same type of information, then you can think of the 20 questions as repeated observations. Again, because of your sample size, while you could do a one-way ANOVA with repeated measures, you are probably safer using the Cochran test.
A: You could sum the responses for each individual.  Then you could do a simple chi-square analysis with a 2x2 table: Group by VDD.  But that's only if you have no other variables to consider.  You could also do a nonlinear mixed model, with person being a random effect and group a fixed effect; this would let you add other variables to the model.
A: *Based on the information provided, its obvious the participants were asked same question, but have different backgrouds. If I may say you are trying to find if answers given by participants from different groups have anything to do with their backgrouds. I also assume you hope to find the probability that an answer given by a participant is most likely to come from a particular group in a given situation. In cases like this, one of the groups is usually used as a control group
In order to compare the two groups of the participants, we need to establish that there is a significant association between two groups with regards to their answers. Chi-square is normally used for this.
Then, once we are convinced that association exists between the two groups; we need to find out how their answers influence their backgrounds .
From your example, say the G1 represent children with formal education and while G2 represents children without formal education. A picture was presented to each child and  asked to identify the event in the picture. Those who identified the event in the picture were coded 1 and those who got theirs' wrong were coded 0. 
A good model used for this analysis is logistic regression model, given by  log(p/(1-p))=β_0+β_1 X,where p is a binomail proportion and x is the explanantory variable.
The parameters of logistic model are β_0  and β_1. In this case, n= 10 samples each group. The explanatory variable is children groups, coded ‘1’ if the children have formal education, ‘0’ if no formal education. The response variable is also an indicator variable which is "occupation identfication" – coded ‘1’ if they were identified correctly, ‘0’ if not. The model says that the probability ( p) that an occupation  will be identifed by a child depends upon if the child has formal education(x=1) or no formal education( x = 0).
So there are two possible values for p, say, p_(formal education)  and p_(no formal education) .
The logistic regression model specifies the relationship between p and x.
Since there are only two values for x, we write both equations. For children groups with  formal education,
log(P_(formaleducation)/(1-P_(formaleducation ))=β_0+β_1
For  children groups with no formal education
log(P_(noformaleducation)/(1-P_(no formal education) ))=β_0
Note that there is a β_1term in the equation for  children group with formal education because x = 1, but it is
missing in the equation for children group with no formal education  because x = 0.*
