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Problem: Hypothesis Testing: Chi-Square Test:: Usage Gender

The document describes using a chi-square test to analyze the relationship between gender and usage for Tommy Hilfiger clothing customers. It recommends using a chi-square test since the variables are non-metric. The steps include: calculating expected and observed frequencies, determining the chi-square test statistic value, comparing it to the critical value at α=0.05, rejecting the null hypothesis of no relationship, and calculating Cramer's V to find a moderate relationship between gender and usage.

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samiha jahan
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104 views4 pages

Problem: Hypothesis Testing: Chi-Square Test:: Usage Gender

The document describes using a chi-square test to analyze the relationship between gender and usage for Tommy Hilfiger clothing customers. It recommends using a chi-square test since the variables are non-metric. The steps include: calculating expected and observed frequencies, determining the chi-square test statistic value, comparing it to the critical value at α=0.05, rejecting the null hypothesis of no relationship, and calculating Cramer's V to find a moderate relationship between gender and usage.

Uploaded by

samiha jahan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 4

Problem: Hypothesis Testing: Chi-Square Test: The marketing department of Tommy

Hilfiger Clothing has produced the following cross-tabulation:

Gender Row
Usage Total
Male Female
Light Users 14 5 19
Medium Users 5 5 10
Heavy Users 5 11 16
Colum Total 24 21

1. CMO of the company is interested to know if there is any relationship between gender
and usage. Which statistical analysis would you suggest here? Why?
2. Conduct your suggested analysis.

Solution to the Problem Number 1

Here we have two variables – gender (non-metric) and usage (non-metric). Since the CMO is
interested to know if there is any relationship between two non-metric variables, the
appropriate statistical analysis is the chi-square test.

Solution to the Problem Number 2

The following steps can be taken for the purpose of conducting the chi-square test:

Step-1: Formulate the H0 and H1: The following null and alternative hypothesis can be
developed here:

H0: There is no relationship between the gender and usage

H1: There is a relationship between the gender and the usage

Step-2: Select An Appropriate Statistical Technique: Since we are interested to see if there
is any relationship between two non-metric variables (gender and usage), chi-square will be the
appropriate statistical technique here.

Step-3: Choose the Level of Significance, α: Assuming 95% Level of Confidence, the level of
significance will be given by α = .05.

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Step-4: Collect Data and Calculate Test Statistic: For the purpose of calculating χ2 (chi-
square) value, the following table can be constructed from the given data:

Gender Row
Usage
Male Female Total
Light Users 14 5 19
10.13 8.87
Medium Users 5 5 10
5.33 4.67
Heavy Users 5 11 16
8.53 7.47
Colum Total 24 21 45

Here χ2 value can be calculated by using the following formula:

Where f0= observed frequency and fe is the expected frequency. Here all f0 are given in all six
cells and expected frequency will be calculated by using the following equation:

where nr is the row total and nc is the column total and n is the total sample size.

How for the first cell, . Similarly for the second cell, . All
expected frequencies were calculated similarly.

Now the value of the chi-square will be calculated here,

= + + + + +

= 1.48 + 1.69 + .02 + .02 + 1.46 + 1.67

= 6.34

Step-5: Determine the Critical Value: Now the critical value for can be found from the
relevant table (at the end of your text book).

Here level of significance, α = .05, and

df = (r – 1) (c – 1) = (3 – 1) (2 – 1) = 2 1 = 2

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The required table is shown here,

Critical = 5.991

Step-6: Determine the Calculated Value: Here the = 6.34 (previously calculated in
calculated
step- 4) which will be compared with critical value of for the purpose of rejecting or not
rejecting the null hypothesis.

Step-7: Reject or Do Not Reject the H0: The null hypothesis can be rejected only when the
calculated value is greater than the critical value.

Here the calculated = 6.34 Critical = 5.991

So the null hypothesis will be rejected here. Now it can be concluded that there is a relationship
between gender and usage.

Now the strength of association will be calculated by using Cramer’s V by because the
dimension of the matrix is 3 2.

⁄
√ [Here r = number of row and c = number of column]

⁄
√ [Here r = 3 and c = 2]

⁄
√

⁄
√ [Here minimum of 2 and 1 is 1; therefore only the minimum value is retained]

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V = .3754 or 37.54 % Here we will follow the following rule of thumb:
Less than 30% Weak relationship
So, the relationship between gender and 30% to 50% Moderate relationship
usage is moderate. More than 50% Strong

Step-8: Draw Marketing Research Conclusion: In Tommy Hilfiger Clothing, there is a


relationship between gender and usage and the relationship is found to be moderately held.

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