Question

A small independent book retailer owns a shop and an online web store. The retailer is investigating whether there is a difference in purchase behaviour (the type of book purchased) when customers make a purchase in-store compared to buying online. The retailer looks at all the purchases of business, language and fiction books both online and in-store on a randomly selected day. The results are shown in the table belowTable: Number of books purchased online and in-store categorised by book type

Type of Book/Place of Purchase	In Store	Online
Business	120	155
Language	47	25
Fiction	120	93

Part a) Use a Chi-square test at a 1% significance level to investigate whether there is an association between the type of book purchased and the place of purchase. [10 marks]

Part b)Using the chi-square test result and the survey data shown in the table, briefly summarise the outcome of the survey for the book retailer

Answer 1

Solution:

From given data, Chi-square test for indepndence is applied and calculated all the things in following table:

Using excel,

Null hypothesis: Assumes that there is no association between the type of book purchased and the place of purchase

Alternative hypothesis: Assumes that there is an association between the type of book purchased and the place of purchase

b)The p-value is less than 0.01 hence reject null hypothesis. That is , there is evidence to claim that there is an association between the type of book purchased and the place of purchase.

Done