Lecture 4 - Contingency Tables Making decisions Who buys...

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Unformatted text preview: Contingency Tables Making decisions Who buys Diet Cola? Firm wants to market new diet cola who is most likely market? Study Design Random sample of people at different income levels Question: do you buy diet cola? Diet Cola and Income: Data Buy Dont Buy Total Under $20k 9149 22618 31767 $20 - $39K 15691 30324 46015 $40 - $59K 13202 25288 38490 $60 - $99K 21146 31456 52602 $100K or more 18121 24718 42839 Total 77309 134404 211713 Which of the following is a null hypothesis? A) Diet cola purchases are not related to income B) The likelihood of purchasing diet cola varies with income level Expected Counts Yes No Total Under $20k 11600 20167 31767 $20 - $39K 16802.8 29212.2 46015 $40 - $59K 14055 24435 38490 $60 - $99K 19208.1 33393.9 52602 $100K or more 15643.1 27195.9 42839 Total 77309 134404 211713 Expected Counts Formula Chi-square statistic 2 1939 = What are the degrees of freedom for this statistic?freedom for this statistic?...
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Lecture 4 - Contingency Tables Making decisions Who buys...

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