Exercise 12.8 METHODS AND APPLICATIONS In the Journal of Marketing Research (Nov

Question

Exercise 12.8 METHODS AND APPLICATIONS In the Journal of Marketing Research (November 1996), Gupta studied the extent to which the purch card is presented at a store checkout. The table below gives peanut butter purchase data collectedb recording all peanut butter purchases at the same stores during the same period Number of Purchases by Household Panel 3,123 1,876 753 4,064 6,291 1,609 1.445 19,161 Market Shares 20 67% 10.07 4.46 18.04 26.04 13.64 7.08 Jif Jif Jif 18 oz 28 40 Peter Pan 10 18 28 40 Skippy Total it Test --(0-EPE 177.130 1.484 12.075 106.717 339.479 386.117 5.761 1,028 763 obs expected 3,123 3,960579 1,876 1,929.513 854.581 4,064 3,456.644 0-E %of 837.579 -53.513 101.581 607.356 6,291 4,989.524 1,301.476 1,609 2,613.560 1,004 560 88.401 17.22 14 1.17 10.37 33.00 37.53 56 753 1.445 1,356 599 19,161 19,161.000 99.99 (a) Show that it is appropriate to carry out a chi-square test Each expected value is 2 (b) Test to determine whether the purchase behavior of the panel of 2,500 households is consistent with the purc your answers x2 to 2 decimal places and x2.05 to 3 decimal places.)

Explanation / Answer

Ans:

a)Each expected value is >=5

b)

From data:

Chi square test statistic=1028.76

df=7-1=6

Critical chi square=CHIINV(0.05,6)=12.592

As,test statistic is greater than 12.592,we Reject H0.We can conclude that purchase behavior is not consistent.

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