SprinVille Herald - Managing the Springfield Herald :...

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Managing the Springfield Herald : Section A – LT 9 Phase 1 Exercise 1 ANALYSIS Hypothesis: Calculation of test Statistics: Critical Value of χ 2, at 0.05 level of Significance with degree of freedom = 3. χ 2 0.05 = 7.81473 But Since, χ2 > χ2 0.05 , Hence we reject the null hypothesis that states the discount proportion are at the levels stated in null hypothesis. From the chi-square analysis we therefore conclude that consumer preferences and discount plans are dependent on each other. Therefore, it is recommended to investigate further on DRC plan as it has the highest probability of being accepted. Also, Discount/No Discount has no effect on the buying behaviour of the consumers but an add-on service of DRC has brought about the change in perception of the consumers.
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Assumption: None of the expected value may be less than 1 No more than 20% of the expected value may be less than 5 Limitation: Though chi-square statistically establishes the dependence of attributes but it does not imply any causal relationship between the two. In other words, chi-square test indicates that the reason of dependence is worth investigating. Phase 2
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SprinVille Herald - Managing the Springfield Herald :...

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