Question

In: Statistics and Probability

Problem 3: A researcher has conducted a survey for Danone yogurt to understand what type of...

Problem 3: A researcher has conducted a survey for Danone yogurt to understand what type of customers buy its products. Thus, in the survey, each respondent is asked if he is a Blue or White collar employee (that is if the respondents has an office job or not) and whether he buys the company’s yogurt or not. The results are shown in the following cross-tabulation table.

         

Danone Yogurt

Buyer

Nonbuyer

Total

White Collar

152

8

160

Blue Collar

14

26

40

Total

166

34

200

  1. Using the table and your calculations, give a clear example of a cross-tabulation cell, column total, row total, grand total, observed frequency cell, expected frequency cell. (2 points)
  2. What is the maximum Chi-Square value you must have, for you to say that there is a statistically significant relationship between the two variables, with 95% accuracy? (1 point)
  3. Is there any relationship between the two variables, type of responder and buyer type? (3 points)
  4. What is the managerial insight you derive from this analysis? (2 points)

Solutions

Expert Solution

from the given data,

a)

Buyer non buyer Total
White Collar 152 8 160
Blue Collar 14 26 40
Total 166 34 200

b)

c)YES, there is a relationship between the two variables, type of responder and buyer type.

d)Sale of danone yougurt depends upon whether the employee is white or blue collar.


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