Question

Use the following data to conduct a Chi-square test for each region of the company in the same manner you viewed in the video:

Region	Expected	Actual
Southeast
Defined	100	98
Open	100	104
Northeast
Defined	150	188
Open	150	214
Midwest
Defined	125	120
Open	125	108
Pacific
Defined	200	205
Open	200	278

Step 3:

Write an 800–1,000-word essay, utilizing APA formatting, to discuss the following:

• Describe why hypothesis testing is important to businesses.
• Report your findings from each Chi-square test that you conducted.
• Based solely on the Chi-square test, discuss whether the company should accept the null hypothesis in each region or reject it in favor of the alternate hypothesis.
• Discuss any other statistical analyses you would want the company to contemplate before deciding if it will go with a defined or open sales strategy.
• Describe and discuss at least 1 other business scenario in which you believe Chi-square testing would be helpful to a company.

Answer 1

Solution :

a)

Here we can say that hypothesis testing is utilized to investigate the connection between at least two factors in a test setting. Business directors utilize the consequences of a speculation test when settling on the board choices.

The hypothesis testing enables chiefs to look at circumstances and end results before settling on a urgent administration choice.

Example:

1. on the off chance that an organization is thinking about offering adaptable work hours to your representatives, they may theorize that this approach change will emphatically influence their profitability.
2. A private venture should test the expense of getting a client. Estimating this worth aides on their evaluating procedure as well as advertising endeavors and overseeing different costs .

b)

Chi Square = ?(Oij – Eij)^2/Eij ----------->(eq(1))

Where as,

Oij is the watched worth and Eij is the normal worth.

Henceforth,

For South east

After substituting the known values south east in equation (1)

Chi Square = (98-100)^2/100 + (104-100)2/100

Chi Square for south east = 0.2

For Upper east

After substituting the known values for upper east in equation (1)

Chi Square = (188-150)2/150 + (214-150)2/150

Chi square for upper east = 36.93

For Midwest

After substituting the known values for mid west in equation (1)

Chi Square = (120-125)2/125 + (108-125)2/125

Chi Square for mid west = 2.512

For Pacific

After substituting the known values for pacific in equation (1)

Chi Square = (205-200)2/200 + (278-200)2/200

Chi Square for pacific = 30.545

c)

Alpha = 0.05

Accepting there are 2 gatherings for every district

degree of freedom = (r-1)*(c-1)

= (2-1)*(2-1)

= 1*1

df = 1

Chi Square Critical = 3.84

Choice Rule:

On the off chance that Chi Square > Chi Square Critical reject the invalid speculation

Subsequently,

For the South east

Chi Square < Chi Square Critical neglect to dismiss the invalid theory.

For the upper east

Chi Square > Chi Square Critical reject the invalid theory for Alternate Hypothesis

For the mid west

Chi Square < Chi Square Critical neglect to dismiss the invalid theory.

For the pacific

Chi Square > Chi Square Critical reject the invalid theory for Alternate Hypothesis.

d)

The organization ought to likewise consider doing the connection test between the two factors to check for affiliation.

e)

The chi-square trial of freedom can be utilized to confirm the impact of sex on buy choices.

Are men the essential leaders with regards to acquiring an expensive things? Is sexual orientation a factor in shading inclination of a vehicle?

Here factor X would be sexual orientation and variable Y would be shading.

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