0) The overnight shipping business has skyrocketed in the last ten years. The si

Question

0) The overnight shipping business has skyrocketed in the last ten years. The single greatest predictor t a company's success has been proven time and again to be customer service. A study was conducted to study the customer satisfaction levels for one overnight shipping business. In addition to the customer's satisfaction level, the customers were asked how often they used overnight shipping. The results are shown below in the following table: Satisfaction level Frequency of Use High Medium Low TOTAL

Explanation / Answer

H0: Satisfaction level and frequency of use are independent

H1: Satisfaction level and frequency of use are not independent

Let the los be alpha = 5%

The chisquare contribution values are

Degrees of freedom: 4

Test Statistic, X^2: 7.2628
Critical X^2: 9.48772
P-Value: 0.1226

Here Chsiquare < Chisquare critical value and P-value > alpha 0.05 so we accept H0

Thus we conclude that  Satisfaction level and frequency of use are independent

The Expected frequencies are High Medium Low Total <2 per month 262.857 125.714 11.429 400 2- 5 per month 131.429 62.857 5.714 200 >5 per month 65.714 31.429 2.857 100 Total 460 220 20 700

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