Assignment on

Summary of Frequency Distribution,

Cross Tabulation and Hypothesis
Testing

In the subject
Advance Marketing Research

By-

Group No 1 (Section A)
Akash Wadekar (MBA05008) Aniket Pohankar (MBA05011)
Ayush Verma (MBA05020) Diptanil Sarkar (MBA05034)
Gaurav Surve (MBA05038) Vaibhav Chavan (MBA05054)
For a marketing research, after the data has been prepared, there is some basic analysis that has
to be done on this data. Frequency distribution, cross tabulation and hypothesis testing are part
of this stage of data analysis in marketing research.
1. Frequency Distribution
Marketing research often needs to answer the questions about variables whose answer
is in terms of a number i.e. count. Hence frequency distribution is a mathematical
distribution whose objective is to obtain a count of number of responses associated with
different values of a variable and express it in terms of percentage. A frequency
distribution for a variable creates table of frequency counts, percentage and cumulative
percentages of all associated variables. It also provides the shape of the distribution
through charts, histograms, etc. For a detailed information, researcher need to use
descriptive statistics in the frequency distribution. These are as follows:
a. Measure of location
It is also known as measure of central tendency as it tends to describe the center of
distribution. These measure of central tendencies are mean, mode and median which
gives the average value, most frequently occurring value and the central value when
dataset is arranged in order respectively.
b. Measure of variability
These are calculated on ratio or interval data and incudes range, interquartile range,
variance and coefficient of variation. Range measures the spread of the data while
interquartile range gives the difference between 25th and 75th percentile. Variance
measures the deviation of data from the mean value. Coefficient of variation
measures the relative variability of the data.
c. Measures of shape
These helps to understand the nature of distribution of the data which is assessed
by examining skewness and kurtosis. Skewness is the tendency of the deviations
from the mean to be larger in one direction than in the other whereas Kurtosis is a
measure of the relative peakedness or flatness of the curve defined by the frequency
distribution.
With the help of these parameters, a researcher can analyse the data in detailed manner
and can draw a conclusion on the distribution of the data.
2. Hypothesis testing
Hypothesis testing is a form of inferential statistics that allows us to draw conclusions
about an entire population based on a representative sample. The following steps are
involved in hypothesis testing.
1. Formulate the null hypothesis H0 and the alternative hypothesis H1.
The null hypothesis is one of two mutually exclusive theories about the properties
of the population in hypothesis testing. Typically, the null hypothesis states that
there is no effect. The alternative hypothesis states that a population parameter does
not equal the null hypothesis value. In other words, there is a non-zero effect.
2. Select an appropriate statistical technique and the corresponding test statistic.
The test statistic measures how close the sample has come to the null hypothesis.
It often follows a well-known distribution, such as the normal, t, or chi-square
distribution.
3. Choose the level of significance.
 Statistical hypothesis tests are not 100% accurate because they use a random
sample to draw conclusions about entire populations. There are two types of errors
related to drawing an incorrect conclusion.
a. False positives: You reject a null that is true. This is a Type I error. The Type
I error rate equals your significance level or alpha (α).
b. False negatives: You fail to reject a null that is false. This is a Type II error.
4. Collect data and calculate test statistics
Determine the sample size and collect the data. Calculate the value of the test
statistic.
5. Construct Acceptance / Rejection regions
Determine the probability associated with the test statistic under the null
hypothesis, using the sampling distribution of the test statistic. Alternatively,
determine the critical values associated with the test statistic that divide the
rejection and non-rejection regions.
6. Based on steps 5, draw a conclusion about H0
Compare the probability associated with the test statistic with the level of
significance specified. Alternatively, determine whether the test statistic has fallen
into the rejection or the non-rejection region.
7. Present your findings
The conclusion reached by hypothesis testing must be expressed in terms of the
marketing research problem.
3. Cross tabulation
In practice, the need to determine the relationship between two or more variables arises.
The solution to these requirements is cross-tabulations. A cross-tabulation is merging
of frequency distribution of two or more variables in the same table simultaneously. It
helps in understanding the relationship between the variables. Cross-tabulations are
also called as contingency tables. These tables has wide range of applications in the
marketing research domain. As the results and analysis can be easily interpreted, helps
in decision-making, provides clear insights about the relation between variables.
However, cross-tabulation of more than three variables become more complex. Thus,
it is inefficient to cross tabulate when there are many variables.
Therefore, statistics is commonly used to verify the statistical significance of the
tabulated variables. This significance is measured with the help of chi-square
statistic(X2).

The strength of the association of the test can be measured with the following tools:
1. Chi coefficient. (Used for two rows and two column tables [2*2])
2. Contingency coefficient(C). (Used for table of any size)
3. Cramer’s V. (used for tables larger than 2*2)
4. Lambda coefficient.

In the calculations of the chi-statistics, variables are being measured only on nominal scale.
For ordinal-level variables other statistics such as Tau b, Tau c and gamma are used to establish
the association between the variables.