Hypo testing in Research Methodology

1. Hypothesis
Testing

2.  Formulate Null and Alternate Hypothesis
 Select appropriate test
 Choose the level of significance
 Collect data and calculate the Test Statistics(TS)
 Determine the critical value of of the TS
 Determine if TS calculated falls into rejection or non
rejection region
 Reject or do not reject Null hypothesis
 Draw a marketing research conclusion
Procedure

3. A statement in which no
difference or effect is
expected
A statement in which
difference or effect is
expected
Null Hypothesis
Alternate Hypothesis
1.Formulate Null and Alternate Hypothesis

4. 1. Chi square test
2. ANOVA
2. Selecting an appropriate test

5. 3.Choosing the level of confidence/significance
If we reject the null, but the null is true, then we have made a
Type I error.Also known as α error
If we accept the null, but the null is false, then we have made
a Type II error. Also known as β error

6. 4. Collect data and calculate the Test Statistics(TS)
5. Determine the critical value of of the TS
6. Determine if TS calculated falls into rejection or
non rejection region
7. Reject or do not reject Null hypothesis
8. Draw a marketing research conclusion

7. Question 1.
The marketing manager of a telecommunication
is reviewing the results of a study of potential users of
a new cell phone. The study used a random sample
200 respondents and was conducted in a
area representative of company’s target area. The
marketing manager in intrigued by one table which a
cross tabulation of data on whether the target
consumer would by the phone (yes or no) and
or not phone has Bluetooth wireless tech. Can the
marketing manager infer that an association exist
between availability of blue tooth tech and buying the
cell phone?

8. Bluetoot
h feature
Yes EF No EF Total
Yes 80 100*100/
200
=50
20 100*100/2
00
=50
100
No 20 100*100/
200
=50
80 100*100/2
00
=50
100
Total 100 100 200
Would buy cell phone

9. Chi Square χ² =
∑(OF-EF)^2
EF
EXPECTED FREQUENCY EF=
(TOTAL NO IN THE ROW * TOTAL NO IN THE COLUMN)
TOTAL SAMPLE SIZE
• Null hypothesis =there is no association between the blue tooth tech and
buying cell phone (the two variables are independent of each other)
• Alternate hypothesis =there is association between the blue tooth tech
and buying cell phone (the two variables are dependent of each other)

10. Chi Square χ² =
CALCULATED 72
ASSUME SIGNIFICANCE LEVEL 0.05
FOR DOF =1 formula for dof =(n-1)*(r-1)
CHI SQUARE TABULATED VALUE = 3.84
calculated TS is greater than tabulated hence we will not accept the null hyothesis
means ther is a
∑(OF-EF)^2
EF