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Frequency Distribution, Cross-Tabulation, and Hypothesis Testing (PPT) 1

This document discusses key marketing research concepts including frequency distribution, hypothesis testing, and cross-tabulation. It provides details on frequency distribution and the associated statistics. It then outlines the general 7-step process for hypothesis testing including formulating hypotheses, selecting a test, determining significance levels, collecting and analyzing data, and making conclusions. Finally, it defines cross-tabulation and the statistics used including chi-square, phi coefficient, contingency coefficient, and Cramer's V, and how hypothesis testing can be applied to cross-tabulation analysis.

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samiha jahan
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272 views22 pages

Frequency Distribution, Cross-Tabulation, and Hypothesis Testing (PPT) 1

This document discusses key marketing research concepts including frequency distribution, hypothesis testing, and cross-tabulation. It provides details on frequency distribution and the associated statistics. It then outlines the general 7-step process for hypothesis testing including formulating hypotheses, selecting a test, determining significance levels, collecting and analyzing data, and making conclusions. Finally, it defines cross-tabulation and the statistics used including chi-square, phi coefficient, contingency coefficient, and Cramer's V, and how hypothesis testing can be applied to cross-tabulation analysis.

Uploaded by

samiha jahan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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MARKETING

RESEARCH
Frequency Distribution, Cross-
Tabulation, and Hypothesis Testing
Topics to be covered:

 Frequency Distribution
 A General Procedure for Hypothesis Testing
 Cross-Tabulations
A View from a Professional
Frequency Distribution

 Frequency Distribution Defined: A mathematical distribution whose


objective is to obtain a count of the number of responses associated
with different values of one variable and to express these counts in
percentage terms.
(continued…)

 Statistics Associated with Frequency Distribution: The most commonly


used statistics associated with frequencies are shown in the following
table:
A General Procedure
for Hypothesis Testing

 The given diagram


summarizes the
general procedure for
hypothesis testing.
(continued…)

 Step-1: Formulate the Hypothesis: The first step is to formulate the


null and alternative hypotheses.
Null Hypothesis: A statement in which no difference or effect is
expected. If the null hypothesis is not rejected no changes will be
made.
Alternative Hypothesis: A statement that some difference or effect is
expected. Accepting the alternative hypothesis will lead to changes
in opinions or actions.
 In marketing research, the null hypothesis is formulated in such a way
that its rejection leads to the acceptance of the desired conclusion.
There can be one-tailed or two-tailed test of the formulated null
hypothesis.
(continued…)
 Step-2: Select an Appropriate Test: A test statistic is a measure of how
close the sample has come to the null hypothesis. It often follows a well-
known distribution, such as the normal, t, or chi-square distribution.
(continued…)

 Step-3: Choose the Level of Significance, α: Whenever we draw


inferences about a population, there is a risk that an incorrect
conclusion will be reached. Two types of errors can occur:
Type I error: Also known as alpha error, it occurs when the
sample results lead to the rejection of a null hypothesis that is in
fact true. The probability of Type I error (α) is called the level of
significance.
Type II error: Also known as the beta error, it occurs when the
sample leads to the nonrejection of a null hypothesis that is in
fact false.
(continued…)
(continued…)

 Step-4: Collect Data and Calculate Test Statistic: Sample size is


determined after taking into account the desired α and β errors and
other qualitative considerations, such as budget constraints. Then the
required data are collected and the value of the test statistic
computed.
(continued…)

 Step-5: Determine the Probability (or Critical Value): Using the


appropriate table, the probability of obtaining the calculated value of
the test statistics is the associated p value. The critical value can be
derived from the appropriate table assuming a certain level of
confidence.
(continued…)

 Step-6 and 7: Compare the Probability (or Critical Value) and Make
Decision: If the p value is less than 0.05, the null hypothesis can be
rejected at 95 percent level of confidence. Alternatively if the critical
value (derived from the table for a particular level of confidence) of
the test statistics is greater than the calculated value, the null
hypothesis will be rejected.
(continued…)

 Step-8: Marketing Research Conclusion: The conclusion reached by


hypothesis testing must be expressed in terms of the marketing
research problem.
Cross Tabulations

 Cross Tabulation Defined: A statistical technique that describes two


or more variables simultaneously and results in tables that reflect the
joint distribution of two or more variables that have a limited number
of categories or distinct values.
 Cross-Tabulation Illustrated: The marketing department of Tommy
Hilfiger Clothing has produced the following cross tabulation:
(continued…)

 Statistics Associated with Cross-Tabulation: The commonly used


statistics associated with cross-tabulation are:
(continued…)

 Chi-Square: The statistic used to test the statistical significance of


the observed association in a cross tabulation. It assists us in
determining whether a systematic association exists between the two
variables.
 The value of χ2 is calculated as follows:
(continued…)

 Phi Coefficient: A measure of the strength of association in


the special case of a table with two rows and two columns
(a 2×2 table). For a sample size of n, this statistic is
calculated as:
(continued…)

 Contingency Coefficient: A measure of the strength of


association in table of any size. This index is also related to
the chi-square, as follows:
(continued…)

 Cramer’s V: A measure of the strength of association used


in tables larger than 2×2. The relationship between
Cramer’s V and the phi coefficient is expressed as:
(continued…)

 Hypothesis testing in cross-tabulation can be summarized as follows:


Thank You!

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