Question

Consider the following table in which 500 respondents are classified based on product use and income:

Product use	High	Income Medium	Low
High	40	30	40
Medium	35	70	60
Low	25	50	150

1. Does this table indicate concomitant variation between product use and income?

2. Based on the table, describe the variation between product use and income.

3. What product could you consider it to be, based on your conclusions and analysis?

Answer 1

Answer) Before answering the question,it is important to understand what is concomitant variation,it is a method in which variation in an effect is caused by variation in the factor causing theat effect.

1. As in above definition,here if you look out of 500 respondents,250 are in low income category,150 or 60%of those s' product use is low,that is in low income category,product use category is low,similarly out of 150 people in medium income category 70 people 's product use category is medium which is more than high or low category of product use in medium income category and same is the case in high income category that is out of 100 people in high income category 40 people 's product use is high which is more than medium or low category in product use in high income category,in other words, the income group decides whether product use will be high,medium or low in that category,so if all these 500 respondents are from high income category,more people will be falling in high product use category than medium or low use category.So,Yes based on above definition and explanation,this table indicate comcomitant variation between product use and income.
2. As already explained above in part 1 of this question the income group decides whether product use will be high,medium or low in that category,a high income group will have more people falling in high product use category than medium or low ,for medium income category,more people will be falling in medium product use category than high or low product use category and for low income category,more people will be in low product use category than high or medium product use category.
3. I would say it is definitely not a necessity product,it is more likely to be a product which has more takers as income increases,it is present in all income categories,so it is not a hedonic product,something like advance smartphone could be close to it,so a product which is not first priority but is useful and more people buy when their purchasing power increases.

Answer is complete.Thank you!