Chapter XV
Chapter XV
Frequency Distribution,
Frequency Distribution,
Cross-Tabulation, and
Cross-Tabulation, and
Hypothesis Testing
Hypothesis Testing
Chapter Outline
Chapter Outline
1) Overview
1) Overview
2) Frequency Distribution
2) Frequency Distribution
3) Statistics Associated with Frequency Distribution
3) Statistics Associated with Frequency Distribution
i. Measures of Location
i. Measures of Location
ii. Measures of Variability
ii. Measures of Variability
iii. Measures of Shape
iii. Measures of Shape
4) Introduction to Hypothesis Testing
4) Introduction to Hypothesis Testing
5) A General Procedure for Hypothesis Testing
6) Cross-Tabulations
6) Cross-Tabulations
i. Two Variable Case
i. Two Variable Case
ii. Three Variable Case
ii. Three Variable Case
iii. General Comments on Cross-Tabulations
iii. General Comments on Cross-Tabulations
7) Statistics Associated with Cross-Tabulation
7) Statistics Associated with Cross-Tabulation
i. Chi-Square
i. Chi-Square
ii. Phi Correlation Coefficient
ii. Phi Correlation Coefficient
iii. Contingency Coefficient
iii. Contingency Coefficient
iv. Cramer’s V
iv. Cramer’s V
v. Lambda Coefficient
v. Lambda Coefficient
8) Cross-Tabulation in Practice
8) Cross-Tabulation in Practice
9) Hypothesis Testing Related to Differences
9) Hypothesis Testing Related to Differences
10) Parametric Tests
10) Parametric Tests
i. One Sample
i. One Sample
ii. Two Independent Samples
ii. Two Independent Samples
iii. Paired Samples
iii. Paired Samples
11) Non-parametric Tests
11) Non-parametric Tests
i. One Sample
i. One Sample
ii. Two Independent Samples
ii. Two Independent Samples
12) Internet and Computer Applications
12) Internet and Computer Applications
13) Focus on Burke
13) Focus on Burke
14) Summary
14) Summary
15) Key Terms and Concepts
15) Key Terms and Concepts
16) Acronyms
RESPONDENT SEX FAMILIARITY INTERNET ATTITUDE TOWARD USAGE OF INTERNET
NUMBER USAGE Internet Technology
Shopping Banking
1 1.00 7.00 14.007.00 6.00 1.001.00 2 2.00 2.00 2.003.00 3.00 2.002.00 3 2.00 3.00 3.004.00 3.00 1.002.00
4 2.00 3.00 3.007.00 5.00 1.002.00 5 1.00 7.00 13.007.00 7.00 1.001.00
6 2.00 4.00 6.005.00 4.00 1.002.00 7 2.00 2.00 2.004.00 5.00 2.002.00 8 2.00 3.00 6.005.00 4.00 2.002.00 9 2.00 3.00 6.006.00 4.00 1.002.00 10 1.00 9.00 15.007.00 6.00 1.002.00 11 2.00 4.00 3.004.00 3.00 2.002.00 12 2.00 5.00 4.006.00 4.00 2.002.00 13 1.00 6.00 9.006.00 5.00 2.001.00 14 1.00 6.00 8.003.00 2.00 2.002.00 15 1.00 6.00 5.005.00 4.00 1.002.00 16 2.00 4.00 3.004.00 3.00 2.002.00 17 1.00 6.00 9.005.00 3.00 1.001.00 18 1.00 4.00 4.005.00 4.00 1.002.00 19 1.00 7.00 14.006.00 6.00 1.001.00 20 2.00 6.00 6.006.00 4.00 2.002.00 21 1.00 6.00 9.004.00 2.00 2.002.00 22 1.00 5.00 5.005.00 4.00 2.001.00 23 2.00 3.00 2.004.00 2.00 2.002.00 24 1.00 7.00 15.006.00 6.00 1.001.00
25 2.00 6.00 6.00 5.00 3.00 1.002.00 26 1.00 6.00 13.00 6.00 6.00 1.001.00 27 2.00 5.00 4.00 5.00 5.00 1.001.00 28 2.00 4.00 2.00 3.00 2.00 2.002.00 29 1.00 4.00 4.00 5.00 3.00 1.002.00 30 1.00 3.00 3.00 7.00 5.00 1.002.00
Internet Usage Data
Internet Usage Data
Table 15.1
Frequency Histogram
[image:7.720.3.700.71.497.2]Frequency Histogram
Figure 15.1
Figure 15.1
2 3 4 5 6 7
Skewness of a Distribution
[image:8.720.27.695.79.476.2]Skewness of a Distribution
Figure 15.2
Figure 15.2
Skewed Distribution Symmetric Distribution
Mean Median
Mode (a)
Formulate H0 and H1
Steps Involved in Hypothesis Testing
[image:9.720.57.692.35.531.2]Steps Involved in Hypothesis Testing
Fig. 15.3Fig. 15.3
Select Appropriate Test
Collect Data and Calculate Test Statistic
Determine Probability Associated with Test
Statistic
Choose Level of Significance,
Draw Marketing Research Conclusion Reject or Do not Reject H0
Determine Critical Value of Test Statistic
TSCR
Determine if TSCR falls into (Non) Rejection
Region Compare with Level of
Probabilities of Type I & Type II Error
Probabilities of Type I & Type II Error
Figure 15.4Figure 15.4
99% of Total Area
Critical Value of Z
= 15
= 17
= 0.01
= 1.645 Z
= -2.33 Z
Z Z
95% of Total Area
Unshaped Area
= 0.0336
[image:11.720.55.670.85.434.2]Probability of z with a One-Tailed Test
Probability of z with a One-Tailed Test
Fig. 15.5
Fig. 15.5
Shaded Area
= 0.9664
Hypothesis Tests
Distributions
A Broad Classification of Hypothesis Tests
A Broad Classification of Hypothesis Tests
Tests of Association
Tests of Differences
Median/ Rankings
[image:12.720.66.693.33.442.2]Means Proportions
Figure 15.6
Frequency Distribution of Familiarity
Frequency Distribution of Familiarity
with the Internet
[image:13.720.42.690.119.462.2]with the Internet
Table 15.2
Table 15.2
Valid Cumulative Value label Value Frequency ( N) Percentage percentage percentage Not so familiar 1 0 0.0 0.0 0.0
2 2 6.7 6.9 6.9
3 6 20.0 20.7 27.6
4 6 20.0 20.7 48.3
5 3 10.0 10.3 58.6
6 8 26.7 27.6 86.2
Very familiar 7 4 13.3 13.8 100.0
Missing 9 1 3.3
Gender and Internet Usage
Gender and Internet Usage
Table 15.3
Table 15.3
Sex
Row
Internet Usage Male Female Total
Light (1) 5 10 15
Heavy (2) 10 5 15
[image:15.720.25.687.110.476.2]
Internet Usage by Sex
Internet Usage by Sex
Table 15.4
Table 15.4
Sex
Internet Usage
Male
Female
Light
33.3%
66.7%
Heavy
66.7%
33.3%
Original Two Variables
Introduce a Third Variable
Some Association between the Two
Variables
Introduction of a Third Variable in
Introduction of a Third Variable in
[image:16.720.60.684.35.507.2]Cross-Tabulation
Cross-Tabulation
Fig. 15.7
Fig. 15.7
Introduce a Third Variable
No Association between the Two
Variables
No Association between the Two
Variables
Some Association between the Two
Variables Refined Association
between the Two Variables
No Change in the Initial
Sex by Internet Usage
Sex by Internet Usage
Table 15.5
Table 15.5
Internet Usage
Sex
Light
Heavy
Total
Male
33.3%
66.7%
100.0%
Purchase of Fashion Clothing by
Purchase of Fashion Clothing by
[image:18.720.36.703.75.511.2]Marital Status
Marital Status
Table 15.6
Table 15.6
Purchase of
Fashion Current Marital Status
Clothing Married Unmarried
High 31% 52%
Low 69% 48%
Column 100% 100%
Number of
Purchase of Fashion Clothing by
Purchase of Fashion Clothing by
[image:19.720.45.687.28.501.2]Marital Status
Marital Status
Table 15.7
Table 15.7
Purchase of
Fashion SexMale Female
Clothing Married Not
Married Married MarriedNot
High 35% 40% 25% 60%
Low 65% 60% 75% 40%
Column
totals 100% 100% 100% 100%
Number of
cases 400 120 300 180
Ownership of Expensive
Ownership of Expensive
[image:20.720.37.692.58.505.2]Automobiles by Education Level
Automobiles by Education Level
Table 15.8
Table 15.8
Own Expensive
Automobile Education
College Degree No College Degree
Yes 32% 21%
No 68% 79%
Column totals 100% 100%
Ownership of Expensive Automobiles
Ownership of Expensive Automobiles
by Education Level and Income Levels
by Education Level and Income Levels
Table 15.9
Table 15.9
Own
Expensive IncomeLow Income High Income
Automobile College
Degree CollegeNo Degree
College
Degree CollegeNo Degree
Yes 20% 20% 40% 40%
No 80% 80% 60% 60%
Column
totals 100% 100% 100% 100%
Number of
Desire to Travel Abroad by Age
Desire to Travel Abroad by Age
Table 15.10
Table 15.10
Desire to Travel Abroad Age
Less than 45 45 or More
Yes 50% 50%
No 50% 50%
Column totals 100% 100%
Desire to Travel Abroad
Desire to Travel Abroad
[image:23.720.44.685.44.499.2]by Age and Sex
by Age and Sex
Table 15.11
Table 15.11
Desire to Travel Abroad
Sex Male
Age Female Age
< 45 >=45 <45 >=45
Yes 60% 40% 35% 65%
No 40% 60% 65% 35%
Column
totals 100% 100% 100% 100%
Number of
Eating Frequently in Fast Food
Eating Frequently in Fast Food
[image:24.720.80.686.23.518.2]Restaurants by Family Size
Restaurants by Family Size
Table 15.12
Table 15.12
Eat Frequently in Fast
Food Restaurants Family Size
Small Large
Yes 65% 65%
No 35% 35%
Column totals 100% 100%
Chi-Square Distribution
Chi-Square Distribution
Figure 15.8
Figure 15.8
Reject H0 Do Not Reject
H0
Critical Value
Independent Samples
One Sample Two or More Samples
One Sample Two or More Samples Paired Samples Independent Samples Paired Samples
* t test
* Z test * Chi-Square * K-S * Runs
* Binomial
* Two-Group t test
* Z test
* Paired
t test * Chi-Square* Mann-Whitney * Median
* K-S
* Sign
* Wilcoxon * McNemar
* Chi-Square
Hypothesis Tests
Parametric Tests (Metric Tests)
Non-parametric Tests (Nonmetric Tests)
[image:26.720.21.683.50.521.2]A Classification of Hypothesis Testing
A Classification of Hypothesis Testing
Procedures for Examining Differences
Procedures for Examining Differences
Fig. 15.9Eating Frequently in Fast Food
Eating Frequently in Fast Food
Restaurants by Family Size & Income
[image:27.720.38.683.37.485.2]Restaurants by Family Size & Income
Table 15.13
Table 15.13
Eat
Frequently in Fast Food Restaurants
Income Low
Family size High Family size
Small Large Small Large
Yes 65% 65% 65% 65%
No 35% 35% 35% 35%
Column
totals 100% 100% 100% 100%
Number of
Two Independent-Samples
[image:28.720.47.714.69.502.2]Two Independent-Samples
t
t
Tests
Tests
Table 15.14
Table 15.14
Summary Statistics
Number Standard
of Cases Mean Deviation
Male 15 9.333 1.137
Female 15 3.867 0.435
F Test for Equality of Variances
F 2tail
value probability
15. 507 .000
t Test
Equal Variances Assumed Equal Variances Not Assumed
t Degrees of 2tail t Degrees of 2tail
value freedom probability value freedom probability
4.492 28 . 000 4.492 18.014 .000
-Number Standard Standard
Variable of Cases Mean Deviation Error
Internet Attitude 30 5.167 1.234 .225
Technology Attitude 30 4.100 1.398 .255
Difference = Internet Technology
Difference Standard Standard 2tail t Degrees of 2tail Mean deviation error Correlation prob. value freedom probability
1.067 0.828 .1511 .809 .000 7.059 29 .000
Paired-Samples
[image:29.720.13.709.100.529.2]Paired-Samples
t
t
Test
Test
Table 15.15
K-S One-Sample Test for
K-S One-Sample Test for
Normality For Internet Usage
Normality For Internet Usage
Table 15.16
Table 15.16
Test Distribution Normal
Mean: 6.600
Standard Deviation: 4.296
Cases: 30
Most Extreme Differences
Absolute Positive Negative KS z 2Tailed p
Mann-Whitney U - Wilcoxon Rank
Mann-Whitney U - Wilcoxon Rank
Sum W Test
Sum W Test
[image:31.720.1.720.40.515.2]Internet Usage by Sex
Internet Usage by Sex
Table 15.17
Table 15.17
Sex Mean Rank Cases
Male 20.93 15
Female 10.07 15
Total 30
Corrected for ties
U W z 2tailed p
31.000 151.000 3.406 .001
Note
U = MannWhitney test statistic
W = Wilcoxon W Statistic
Wilcoxon Matched-Pairs
Wilcoxon Matched-Pairs
Signed-Rank Test
Signed-Rank Test
[image:32.720.26.712.88.470.2]Internet With Technology
Internet With Technology
Table 15.18
Table 15.18
(Technology Internet) Cases Mean rank
Ranks 23 12.72
+Ranks 1 7.50
Ties 6
Total 30
A Summary of Hypothesis Tests
A Summary of Hypothesis Tests
Related to Differences
Related to Differences
Table 15.19
Table 15.19
Sample Application Level of Scaling Test/Comments
One Sample
One sample Distributions Nonmetric KS and chisquare for goodness of fit
Runs test for randomness Binomial test for goodness of fit for dichotomous variables
One sample Means Metric t test, if variance is unknown
z test, if variance is known
One Sample Proportions Metric z test
Contd.
Two Independent Samples
Two independent samples Distributions Nonmetric KS twosample test for examining the equivalence of two distributions
Two independent samples Means Metric Twogroup t test
F test for equality of variances
Two independent samples Proportions Metric z test
Nonmetric Chisquare test
Two independent samples Rankings/Medians Nonmetric MannWhitney U test is more powerful than the median test
Paired Samples
Paired samples Means Metric Paired t test
Paired samples Proportions Nonmetric McNemar test for binary variables Chisquare test
Paired samples Rankings/Medians Nonmetric Wilcoxon matchedpairs rankedsigns
test is more powerful than the sign test
Table 15.19 Contd.
Table 15.19 Contd.
RIP15.1
RIP15.1
In the 90s, the trend is toward global marketing. How can marketers
In the 90s, the trend is toward global marketing. How can marketers
market a brand abroad where there exists diverse historical and
market a brand abroad where there exists diverse historical and
cultural differences. According to Bob Kroll, the former president of
cultural differences. According to Bob Kroll, the former president of
Del Monte International, uniform packaging may be an asset, yet,
Del Monte International, uniform packaging may be an asset, yet,
catering to individual countries' culinary taste preferences is more
catering to individual countries' culinary taste preferences is more
important. One recent survey on international product marketing
important. One recent survey on international product marketing
makes this clear. Marketing executives now believe it's best to think
makes this clear. Marketing executives now believe it's best to think
globally but act locally. Respondents included 100 brand and
globally but act locally. Respondents included 100 brand and
product managers and marketing people from some of the nation's
product managers and marketing people from some of the nation's
largest food, pharmaceutical, and personal product companies. 39%
largest food, pharmaceutical, and personal product companies. 39%
said that it would not be a good idea to use uniform packaging in
said that it would not be a good idea to use uniform packaging in
foreign markets while 38% were in favor of it. Those in favor of
foreign markets while 38% were in favor of it. Those in favor of
regionally targeted packaging, however, mentioned the desirability of
regionally targeted packaging, however, mentioned the desirability of
maintaining as much brand equity and package consistency as
maintaining as much brand equity and package consistency as
possible from market to market.
possible from market to market.
International Brand Equity - The
International Brand Equity - The
Name Of The Game
RIP15.1 Contd.
RIP15.1 Contd.
But they also believed it was necessary to tailor the package to fit
But they also believed it was necessary to tailor the package to fit
the linguistic and regulatory needs of different markets. Based on
the linguistic and regulatory needs of different markets. Based on
this finding, a suitable research question can be: Do consumers in
this finding, a suitable research question can be: Do consumers in
different countries prefer to buy global name brands with different
different countries prefer to buy global name brands with different
packaging customized to suit their local needs? Based on this
packaging customized to suit their local needs? Based on this
research question, one can frame a hypothesis that other things being
research question, one can frame a hypothesis that other things being
constant, standardized branding with customized packaging for a
constant, standardized branding with customized packaging for a
well established name brand will result in greater market share. The
well established name brand will result in greater market share. The
hypotheses may be formulated as follows:
hypotheses may be formulated as follows:
H0: Standardized branding with customized packaging for a well
H0: Standardized branding with customized packaging for a well
established name brand will not lead to greater market share in the
established name brand will not lead to greater market share in the
international market.
international market.
H1: Other factors remaining equal, standardized branding with
H1: Other factors remaining equal, standardized branding with
customized packaging for a well established name brand will lead to
customized packaging for a well established name brand will lead to
greater market share in the international market.
RIP15.1 Contd.
RIP15.1 Contd.
To test the null hypothesis, a well established brand like Colgate
To test the null hypothesis, a well established brand like Colgate
toothpaste which has followed a mixed strategy can be selected.
toothpaste which has followed a mixed strategy can be selected.
The market share in countries with standardized branding and
The market share in countries with standardized branding and
standardized packaging can be compared with market share in
standardized packaging can be compared with market share in
countries with standardized branding and customized packaging,
countries with standardized branding and customized packaging,
after controlling for the effect of other factors. A two
after controlling for the effect of other factors. A two
independent samples t test can be used
RIP15.2
RIP15.2
Descriptive statistics indicate that the public perception of
Descriptive statistics indicate that the public perception of
ethics in business, and thus ethics in marketing, are poor. In
ethics in business, and thus ethics in marketing, are poor. In
a poll conducted by Business Week, 46% of those surveyed
a poll conducted by Business Week, 46% of those surveyed
said that the ethical standards of business executives are
said that the ethical standards of business executives are
only fair. A Time magazine survey revealed that 76% of
only fair. A Time magazine survey revealed that 76% of
Americans felt that business managers (and thus
Americans felt that business managers (and thus
researchers) lacked ethics and this lack contributes to the
researchers) lacked ethics and this lack contributes to the
decline of moral standards in the U.S. However, the general
decline of moral standards in the U.S. However, the general
public is not alone in its disparagement of business ethics.
public is not alone in its disparagement of business ethics.
In a Touche Ross survey of businesspersons, results showed
In a Touche Ross survey of businesspersons, results showed
that the general feeling was that ethics were a serious
that the general feeling was that ethics were a serious
concern and media portrayal of the lack of ethics in
concern and media portrayal of the lack of ethics in
business has not been exaggerated.
business has not been exaggerated.