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DSCI 3710 Excel Qu Insert Page Layout Formulas Data Review View Add-ins ARGUS s Cut Og Copy Arial Format Painter ! Clipboard Font Alignment 669 254 337 409 290 -325-385 557 254 189 725 141 190 14 20 18 11 16 22 22 22 19 17 18 17 200 75 23 24 25 26 29 31 32 Data

PartI Mc Kinley Inc., a major consulting firm conducts a study for Kneewise, a major jeans and apparel manufacturer to determine the relationship between the age of apparel buyers (basically, their customers) and the primary channel from which they will buy the merchandise. Kneewise has three major channels of retail/distribution; department stores, mail-order catalogs and internet kiosks. 1000 apparel buyers were selected from each age group, and the primary source from which the apparel buyer bought the merchandise was noted. Columns A, B, and C contain the channel used to buy merchandise. These are department stores, mail-order catalogs and internet kiosks respectively The five rows 1,2,3,4 and 5 correspond to the age groups, viz, less than 25, 25 and less than 35, 35 and less than 45, 45 and less than 55, and 55 and over respectively. Data Set Assgt-3 xls (Columns A-C) The data are in columns A -C of an Excel spreadsheet 2. Column A Stores, column B Catalogs, column C Internet Kiosks. 3. Transfer the contingency table to Minitab and perform a chi-square test for association between Age and Behavior. Use 0.05 as the level of significance. Assignment Questions: 1. What are the null hypothesis and alternative hypothesis to test whether the age groups are homogeneous across the channels from which the apparel was purchased? Are any expected frequencies less than 57 What is the p-value of the test? Do the data indicate that the age groups are homogeneous across the channels from which the apparel was purchased at the 5% significance level? What recommendation regarding marketing effort in the various channels should be made relative to the various age group markets? 2. 3. 4. 5.
- Caption 1 Normal T No Spac.. Heading 1 TitleS Subtitle Subtle Em... Paragraph Part 2, *sssono Doctor and Ramble Inc. hands out free samples of their shampoos usually during freshman orientation on college campuses. It is noteworthy that with more than 2000 college campuses targeted nationwide by Doctor and Ramble, their anmual promotion budget runs into the millions. Assume that the data in Columns F-I, which indicate whether the campus population actually availed of the fiee samples and whether they decided to switch to Doctor and Rambles brand of shampoos, was obtained from a randomly selected, large university campus. The four rows of 830ss icate four adult age categories: 18 and less than 30, 30 and less than Excel Assignment 3 DSCI3710 40, 40 and less than 50, 50 and over years of age respectively [Data Set Asset#3.xis (Columns F-DJ 1. The data are in columns F -I of the Excel dataset spreadsheet 2. The columns F through I indicate whether a student Did not sample and did not switch Did not sample but switched, Sampled but did not switch and Sampled and switched 3. Conduct the Chi-Square test using Minitab as indicated earlier, but at a significance level of 4. Combine the columns (add the values) in which shoppers did not sample (columns F &G) respectively 0.01 into column K. Also combine the columns in whichghoppers did sample (columns H& D column L 5. Repeat the Chi-Square test at a significance level of 0.01 for columns K & L.
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Answer #1

Following is the output from minitab:

Chi-Square Test for Association: Worksheet rows, Worksheet columns

Rows: Worksheet rows   Columns: Worksheet columns

C1 C2 C3 All
1 669 141 190 1000
499.0 251.4 249.6
2 254 337 409 1000
499.0 251.4 249.6
3 290 325 385 1000
499.0 251.4 249.6
4 557 254 189 1000
499.0 251.4 249.6
5 725 200 75 1000
499.0 251.4 249.6
All 2495 1257 1248 5000

Cell Contents
      Count
      Expected count

Chi-Square Test

Chi-Square DF P-Value
Pearson 810.879 8 0.000
Likelihood Ratio 862.211 8 0.000

1. Null hypothesis: There is no association between age group and channel. | Alternate Hypothesis: There is association between age group and channel.

2. As evident from the output of minitab expected values none are less than 5. (Expected values are in the lower side of every row).

3. p-value of test is 0.000 from minitab result, which means there is association between age group and channel.

4. Since the p-value is 0.000 which is less than 0.05 at 95% confidence level we can say that age groups are not homogenous across channels, means there is an association.  

5. Recommendations are:

For age group less than 25, 45-55 and greater than 55, concentrate on stores channel, For age group 25-35 and 35-45 there seems to be not so skewed distribution and more data needed to confirm so, but more concentration should be given on catalogs and internet-kiosks channel for these 2-groups.

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