Test 2 Answer Key

1.(a) Differentiate between balanced scale and unbalanced scale with example. [2]

Balenced scale: a scale with equal no of favourable and unfavourable categories

Unbalanced scale: a scale in which no favourable cases are not equal to no of unfavourable cases

(b) Differentiate between sampling error and non-sampling error. [2]

Sampling error: the error which arises due to drawing inferences about population parameter on the basis of
observations drawn from a sample is called sampling error. Sampling error arises due to sample is not representative of
population.

Non sampling error: the error that arises due to improper specification of data, inaccurate methods of interview,
inaccurate reporting by the respondent, and also due to errors in data processing

(c) Suppose an insurance company wants to ascertain the customer perception towards the company. Construct
semantic differential scale measure customer attitude with minimum of four dimensions [2]

Slow in claim settlement 1 2 3 4 5 6 7 fast in claim settlement

Unfriendly staff 1 2 3 4 5 6 7 friendly staff

Narrow product range 1 2 3 4 5 6 7 Wide product range

Unready service 1 2 3 4 5 6 7 prompt service

2. Indicate giving reasons the scale of measurements for the following variable(s): [4]
(a) Geographical area Ratio scale
(b) Sensex interval scale
(c) Preferences ordinal scale
(d) Religion nominal scale
3. Identify type of sampling method in each of the following
[4]
a) A Researcher visited nearby shops to find out what brand of vegetable oil people are buying
b) Test markets selected to determine the potential for the new product
c) Collecting data from every alternative customer visiting retail store
d) Collecting data from referrals provided by initial respondents

(a) Convenience sampling

(b) Judgemental sampling
(c) Systematic sampling
(d) Snowball sampling

4.
Null hypothesis: There is no association between Model liking/disliking and age group
Alternative hypothesis: There is an association between Model liking/disliking and age group

Test statistic: Chi square test

Significance level = 5%
Degrees of freedom = 3

Caliculated value of chi square = 50.75

Critical value of chisquare = 7.81

Reject null hypothesis

Conclusion: t There is an association between Model liking/disliking and age group

Strength of association = 0.3245