MKF2121 Week 08 moodle.pdf - Lecture 8 Logic of Hypothesis Testing Cross-Tabulation Dr Junzhao Ma MKF2121 1 Marketing Research Methods Todays agenda

# MKF2121 Week 08 moodle.pdf - Lecture 8 Logic of Hypothesis...

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1 Lecture 8 Logic of Hypothesis Testing Cross-Tabulation Department of Marketing Dr. Junzhao Ma MKF2121 Marketing Research Methods 1 Today’s agenda 2 More on hypothesis testing – the intuition behind statistical tests and the concept of a test statistic Learn about one type of tests of association: cross- tabulation (Chi-square test) Last week we discussed the steps of hypothesis testing 1. Problem Definition (RQ) 2. Clearly State the Null and Alternative Hypotheses 3. Choose the relevant statistical test 4. Calculate p-value 5. Is p-value<0.05? No Do not reject null Reject null hypothesis Yes 3
2 4 Revisit - why do we have to use statistical tests to “answer” RQ? Sample characteristics population characteristics Population characteristics is unknown. Sample characteristics is a random variable Think like a detective: what does the evidence (sample characteristics) tell me what really happened (population characteristics)? Hypothesis testing : the formal process to use the statistical properties of the data to evaluate beliefs about population characteristics (hypothesis) Population? Sample Statistical testing - three levels of understanding Mechanical – know which button to push in SPSS, what to look for in the output Mathematical (formula) – nice to have (in the textbook), but not required Conceptual – the intuition behind the technique used 5 Example to illustrate the rationale behind the statistical testing (in particular, test statistic) 6 Buyer ID Miles per gallon 1 30.9 2 24.5 3 31.2 4 28.7 5 35.1 6 29 7 28.8 8 23.1 9 31 10 30.2 11 28.4 12 29.3 13 24.2 14 27 15 26.7 16 31 17 23.5 18 29.4 19 26.3 20 27.5 21 28.2 22 28.4 23 29.1 24 21.9 25 30.9 Toyota dealership in the city of New Haven claims that the average miles per gallon (MPG) is 30 for the new Toyota Corolla A local consumer group collected data from the recent buyers to verify this claim RQ – Is the new Toyota Corolla’s average MPG equal to 30?