Q1.A company has introduced a new brand product.

The marketing manager wants to know whether the preference

consumer's education level. The survey of a sample of 400 consumers gave the following results.

Illiterates Literates High School

Brought new Brand 60 55 45
Didn't buy new brand 60 45 55
Total 100 100 100

a) Calculate the expected frequencies and the chi-square value.

b) State the null hypothesis.
c) State whether you accept or reject the null hypothesis at a = 0.05.

H0: Preference of brand is independent of consumer's education level

Step 1
H1: Preference of brand is dependent of consumer's education level

Step 2 Level of Significance = 5%

Step 3 Degree of Freedom : (2-1)*(4-1) = 3

Observed Expected
(Oi-Ei)^2 (Oi-Ei)^2/Ei
Frequency Frequency
60 52.5 56.25 1.0714285714
60 47.5 156.25 3.2894736842
55 52.5 6.25 0.119047619
45 47.5 6.25 0.1315789474
Step 4
45 52.5 56.25 1.0714285714
55 47.5 56.25 1.1842105263
60 52.5 56.25 1.0714285714
40 47.5 56.25 1.1842105263

Calculated Value 9.12

Calculated value is 9.12 > Tabulated value 7.815 (5%, 3 deg of freedom)
Step 5 We reject H0
Thus, Brand preference is dependent on consumer education level
know whether the preference for the brand is distributed independent of the
ng results.

Graduates Total
60 210
40 190
100 400

.05.

Tablulated Value : 7.815

Q2. A manager of department store would like to study women's spending per year on cosmetics. He is Interested
population proportion of women who purchase their cosmetics primarily from his store. If he wants to have a 90 p
of estimating the true proportion to be within ± 0.045, what will be the sample size?

η= 90 percent confidence
(𝒁^𝟐 𝒑
𝒒)/𝒆^𝟐
Z= 1.645
e= 0.045
p= 0.5 //since the vale of p and q is unknown, so we have
q= 0.5 substituted maximum value of p*q = 0.25

Sample Size (n) = 334.0772

Hence, the required sample size of women will be 335 (approx.)

ear on cosmetics. He is Interested in knowing the
is store. If he wants to have a 90 per cent confidence
ize?

known, so we have
p*q = 0.25