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Chi Sqaure

This document tests two hypotheses related to the impact of advertising on sales volume. The first hypothesis tests whether advertising has any impact on sales volume. Chi-square tests show the results are not significant, so the null hypothesis cannot be rejected. The second hypothesis tests whether there is a positive relationship between advertising and sales. Again, chi-square tests show the results are significant, so the null hypothesis is rejected, indicating there is a positive relationship between advertising and sales volume.

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Raja Raja
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33 views5 pages

Chi Sqaure

This document tests two hypotheses related to the impact of advertising on sales volume. The first hypothesis tests whether advertising has any impact on sales volume. Chi-square tests show the results are not significant, so the null hypothesis cannot be rejected. The second hypothesis tests whether there is a positive relationship between advertising and sales. Again, chi-square tests show the results are significant, so the null hypothesis is rejected, indicating there is a positive relationship between advertising and sales volume.

Uploaded by

Raja Raja
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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TEST OF HYPOTHESIS 1: That the advertising programmer of the company has

no impact on the sales volume of their products or services.


Gender
Positive
negative
Total

Male
44
10
54

Male Positive = 54x80/100 =

43.2

Female Positive = 46x80/100=36.8

Female
36
10
46

Total
80
20
100

Male Negative = 54x20/100= 10.8


Female Negative = 46x20/100=9.2

Excepted value =100/5= 20


Fo
43.2
10.8
36.8
9.2

Fe
20
20
20
20

Fo-Fe
23.2
-9.2
16.8
-10.8

(Fo-Fe)2
538
84.64
282.24
116.64

(Fo-FE)2/Fe
26.9
4.232
14.112
5.832

Required Frequency = 51.076

Table 17 Significance table


Total
SA

Fo
30

Fe
20

Fo-Fe
10

(Fo-Fe)2
100

(Fo-FE)2/Fe
5

A
U
SD
D
Total
(c-1)(r-1)

24
6
10
30

20
20
20
20

4
-16
-10
10

16
256
100
100

0.8
12.8
5
5
28.6

(2-1)(2-1)=1x1=1
Level of significance is 0.05
Therefore x2 t=
X2 C=28.6
The Chi-square statistic is 0.161. The P value is 0.688209.
This result is not significant at p < 0.05..

TEST FOR HYPOTHESIS 2: That there is no positive and


significant relationship between advertising and sales volume of a
product.

Table 18 Hypothesis 2
Gender
Positive
Female
Total

Male
30
10
40

Female
60
0
60

Total
90
10
100

Male Positive = 30x90/100 =27

Male Negative = 10x10/100= 1

Female Positive = 10x90/100= 9

Female Negative = 0x10/100=0

Excepted value =100/5= 20

Table 19 Required Frequencies

Fo
27
1
9
0

Fe
20
20
20
20

Fo-Fe
7
-19
-11
-20

(Fo-Fe)2
43
361
121
400

(Fo-FE)2/Fe
2.15
18.05
6.05
20

Required Frequency = 46.25

Table 20 Significance table


Total
SA
A
U
SD
D
Total

Fo
30
51
0
10
9

Fe
20
20
20
20
20

(c-1)(r-1)
(2-1)(2-1)=1x1=1
Level of significance is 0.05
Therefore x2 t=

Fo-Fe
10
31
-20
-10
-11

(Fo-Fe)2
100
961
400
100
121

(Fo-FE)2/Fe
5
48.05
20
5
6.05
84.1

X2 C=28.6
The Chi-square statistic is 84.100 . The P value is 0.0001
This result is not significant at p < 0.05..

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