Question

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

• Describe why hypothesis testing is important to business
• 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

A) Hypothesis checking out is used to explore the relationship between two or greater variables in an experimental placing. Business managers use the results of a speculation take a look at when making control decisions. Hypothesis checking out permits managers to observe reasons and consequences earlier than creating a critical control choice.

Eg:

if a company is thinking about offering bendy paintings hours on your personnel, they may hypothesize that this policy change will undoubtedly affect their productiveness.
A small enterprise would possibly want to check the fee of acquiring a client. Hypothesizing this cost publications now not handiest on their pricing method but additionally advertising and marketing efforts and handling different costs.

B) Alpha = 0.05

Assuming there are 2 groups for each region

df = (r-1)(c-1) = (2-1)(2-1) = 1*1 = 1

Chi Square Critical = 3.84

Decision Rule:

If Chi Square > Chi Square Critical reject the null hypothesis

Hence,

Southeast

Since, Chi Square < Chi Square Critical fail to reject the null hypothesis.

Northeast

Since, Chi Square > Chi Square Critical reject the null hypothesis in favour of Alternate Hypothesis

Midwest

Since, Chi Square < Chi Square Critical fail to reject the null hypothesis.

Pacific

Since, Chi Square > Chi Square Critical reject the null hypothesis in favour of Alternate Hypothesis.

C) The corporation have to additionally keep in mind doing the correlation check between the 2 variables to check for association.

D) Chi-square test of independence can be used to verify the affect of gender on buy choices. Are guys the number one decision makers when it comes to buying a huge price ticket gadgets? Is gender a aspect in coloration desire of a car? Here variable X could be gender and variable Y might be coloration.