PART 1: Determining the Appropriate Test

Assume that the following three questions appeared on a surveythat is being used to collect data on consumer behavior for yourcompany.

Question 1:         Doyou subscribe to Netflix? (CircleOne)                              YES         NO

Question 2:         Whatis your monthly average income indollars?              $__________

Question 3:         Inwhich of the 5 U.S. regions do you reside? (Circle one)

                               Northeast          Southwest         West         Midwest        Southeast

                               

1. You want to determine if a relationship exists betweenthe U.S. region in which the consumer resides and whether or notthey are a subscriber to Netflix.

1. Which test should you run to help you answer this question?(ANOVA or Chi-Square test)

1. Given your answer in part “A” above, set up the nulland alternative hypotheses to begin your test.

1. Now assume that you want to determine if theaverage monthly income of a consumer is different among groups ofpeople living in different regions of the UnitedStates.

1. Which test should you run to help you answer this question?(ANOVA or Chi-Square test)

1. Given your answer in part “A” above, set up the nulland alternative hypotheses to begin your test.

PART 2: Analysis of a Chi-Square test

Assume that a research study was conducted that included thefollowing survey questions:

Question 1:         Haveyou ever attended an event at the city Performing ArtsCenter?      YES         NO

Question 2:         Haveyou ever attended an event at the city AthleticCenter?                      YES         NO

A sample of 93 people answered the survey questions. Theresearch team utilized Minitab statistical software to create theresults shown below. You will find a contingency table with theChi-Square test statistic and p-value at the bottom.

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CHI-SQUARE TEST FOR ASSOCIATION: PERFORMING ARTS CENTERATTENDANCE, ATHLETIC CENTER ATTENDANCE

Rows: Performing Arts Center Attendance                      Columns: Athletic Center Attendance

	NO	YES	   All
NO	15	1	16
	9.634	6.366
YES	41	36	77
	46.366	30.634
All	56	37	93

CellContents:                       Count

                                               Expected Count   

	Chi-Square	DF	P-Value
Pearson	9.072	1	0.003

Review the study and the Minitab results. Then answerthe following questions:

1. If you want to determine if a relationship exists betweenwhether or not a person attended an event at the Performing Artscenter and whether or not the person attended an event at theAthletic Center, set up the null and alternative hypotheses tobegin your test.

1. Find the p-value in the output. Draw a conclusionabout your hypotheses based on this p-value. Be sure to explainyour answer. Why did you draw the conclusion that you did?