A research team conducted a study of soft- drink preferences among residents in

Question

A research team conducted a study of soft- drink preferences among residents in a test market prior to an advertising campaign for a new cola product. Of the participants, 130 are teenagers and 130 are adults. The researchers secured the following results:

Cola Non-cola

Teenagers 50 80

Adults 90 40

Apply the steps in testing a research hypothesis.

Perform a chi-square test and interpret the results.

Determine how to present the results.

How might the results obtained from the test affect the advertising strategy?

Explanation / Answer

Null hypothesis H0: No association between age and softdrink

Alternative hypothesisHa : There is association between age and softdrink

Alpha=0.05

Test statisti

(undefined)

follows a Chi-square distribution with 1 degrees of freedom

Where, O = observed frequency and E = expected frequency. E = (column total * row total)/grand total

The expected frequencies are given below

Substituting the values we get

Summary

df = 1

The value of the test statistic (undefined) =24.762

Critical value (undefined) =3.841

Critical region is (undefined) >3.841

P value <0.000

Decision: Reject the null hypothesis that there is no association between age and softdrink

Sample propotion shows that the Adults uses more Cola products. So the advertsing agencies of Cola products should concentrate on Adults and the advertsing agencies of Non-Cola products should concentrate on Teenagers

Cola Non-cola Total Teen Observed 50 80 130 Expected 70.00 60.00 130.00 Adult Observed 90 40 130 Expected 70.00 60.00 130.00 Total Observed 140 120 260 Expected 140.00 120.00 260.00

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