Assignment 2

1.

Alternate Hypothesis (Ha): The monthly income of car owners in the survey varies according
to their level of Education.
Null Hypothesis (H0): The monthly income of car owners do not depend on level of
education.
The Pearson Chi-Square significance is 0.024. Since, it is less than the significance level of
0.05, the alternate hypothesis is accepted.

Outcome:

 From the above done cross tabulation we can infer that monthly income rises with
level of education.
 93 people, who have higher education such as college grad and post grad out of 143
people, have monthly income of more than 65k
 56 people out of 60 who are college grad earns more than 65k monthly
 30 people out of 33 people ho have done post graduation have a income of more
than 65k non a monthly basis
 Only one people earns a higher income who have not finished high school
  Majority of High school diploma holders also earn more than 65k per month, 12 out
of 13 people
 Out of a total of 35 people who started college, 3 people earns between 35k-50k, 5
earn between 50k-65k and 27 people earn more than 65k per month
 As in whole out of 143 people, 9 earn between 35k-50k, 8 earn between 50k-65k and
126 people earn more than 65k per month.

2.
Alternate Hypothesis (Ha) : The importance of non-polluting engine of car is different for the
owners having different level of education.
Null Hypothesis (H0) : There is no difference in importance given to non-polluting engine by
the owners depending on their level of education.
The significance level is 0.022 which is less than 0.05. So, the alternate hypothesis is
accepted
Outcome:

 The level of significance is <0.05, it implies there is a relationship between monthly

income and gas mileage.
 People who earn between 50k-60k do not really have much interest in high mileage
car and there is below 2.75
 People with low monthly income between 35k-50k care about the mileage of car and
their mean lies between 3.50 and 3.75
 People who earn more than 65k per month prefer high mileage car and their mean is
above 3.75

3.
The significance level of all the 7 variables is less than 0.05. This means that all the 7
variables are significant in forming the clusters.

Outcome:

 The no. of cases is maximum in cluster 2 so it is the most important cluster for
analysis
 In cluster 1, highest value is of warm relationship with brand and lowest is of fun and
excitement giving car
 In cluster 2, the value of fun and excitement is on the top with lowest value of
owning give self-respect
 In cluster 3, the value of owning gives sense of belongingness is highest and owning
gives self respect is at the lowest
 The attribute of fun and excitement giving car has almost a neutral importance level in
all the three clusters.
 In cluster 1 and 3, the value of owning gives sense of belongingness is higher than
value of fun and excitement giving car and value of owning creates fulfilment
  In cluster 2 all the values are different by slight and very less differences, whereas
the difference is much greater in that of cluster 1 and 3.
 The value of owning give self-respect is lowest in all the 3 clusters.
 In cluster 1 all the values are above the level of 4, except the value of fun and
excitement giving car
 In cluster 3, the only value above the level of value 4 is the value of owning gives
sense of belongingness
 In all 3 clusters, the value of warm relationship with brand is greater than the value
of feeling safe in the car.

Submitted by- Anant Kumar (4017016003)