Question

PART 1: Determining the Appropriate Test

Assume that the following three questions appeared on a survey that is being used to collect data on consumer behavior for your company.

Question 1:         Do you subscribe to Netflix? (Circle One)                               YES         NO

Question 2:         What is your monthly average income in dollars?               $__________

Question 3:         In which of the 5 U.S. regions do you reside? (Circle one)

                                Northeast           Southwest          West          Midwest        Southeast

                               

1. You want to determine if a relationship exists between the U.S. region in which the consumer resides and whether or not they are a subscriber to Netflix.

1. Which test should you run to help you answer this question? (ANOVA or Chi-Square test)

2. Given your answer in part “A” above, set up the null and alternative hypotheses to begin your test.

2. Now assume that you want to determine if the average monthly income of a consumer is different among groups of people living in different regions of the United States.

1. Which test should you run to help you answer this question? (ANOVA or Chi-Square test)

2. Given your answer in part “A” above, set up the null and alternative hypotheses to begin your test.

PART 2: Analysis of a Chi-Square test

Assume that a research study was conducted that included the following survey questions:

Question 1:         Have you ever attended an event at the city Performing Arts Center?       YES         NO

Question 2:         Have you ever attended an event at the city Athletic Center?                       YES         NO

A sample of 93 people answered the survey questions. The research team utilized Minitab statistical software to create the results shown below. You will find a contingency table with the Chi-Square test statistic and p-value at the bottom.

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CHI-SQUARE TEST FOR ASSOCIATION: PERFORMING ARTS CENTER ATTENDANCE, ATHLETIC CENTER ATTENDANCE

Rows: Performing Arts Center Attendance                        Columns: Athletic Center Attendance

	NO	YES	All
NO	15	1	16
	9.634	6.366
YES	41	36	77
	46.366	30.634
All	56	37	93

Cell Contents:                        Count

                                                Expected Count   

	Chi-Square	DF	P-Value
Pearson	9.072	1	0.003

Review the study and the Minitab results. Then answer the following questions:

1. If you want to determine if a relationship exists between whether or not a person attended an event at the Performing Arts center and whether or not the person attended an event at the Athletic Center, set up the null and alternative hypotheses to begin your test.

2. Find the p-value in the output. Draw a conclusion about your hypotheses based on this p-value. Be sure to explain your answer. Why did you draw the conclusion that you did?

Answer 1

Tabulated Statistics: C1, Worksheet columns

Rows: C1   Columns: Worksheet columns

	No	Yes	All
No	15	1	16
	9.634	6.366
Yes	41	36	77
	46.366	30.634
All	56	37	93

Cell Contents
      Count
      Expected count

Chi-Square Test

	Chi-Square	DF	P-Value
Pearson	9.072	1	0.003

Minitab output is correct (If the data provided by you is correct)

_____________________________________________________

Ho : There is no relationship exists between a person attended an event at the Performing Arts center and the person attended an event at the Athletic Center.

H1: There is a relationship exists between a person attended an event at the Performing Arts center and the person attended an event at the Athletic Center.

______________________________________________________

P-value is 0.003 So, Reject Ho. We have enough evidence to conclude that there is a relationship exists

Reason- condition for rejecting Ho . if P-value is less than the level of significance then we reject the null hypothesis. Here, level of significance is not given lets take it 0.05. Comparing with P-value (0.003) implies P-value is less than 0.05 that is why we are rejecting the null hypothesis