Chapter no. 07.pptx statistic analysis for managers

Chapter no. 07.pptx statistic analysis for managers

1. Statistical Analysis for Managers

2. Chapter No 7 Test of Independence A Test of Independence is a statistical test used to determine whether two categorical variables are independent of each other or if there is a significant association between them. It is commonly performed using the Chi-Square Test of Independence, which evaluates whether the distribution of one variable is related to the distribution of another.

3. Higher-Order Contingency Tables 2x2 table is the simplest form, higher-order contingency tables involve more rows and columns. For example, a 3x3 contingency table has 3 rows and 3 columns, and a 4x4 table has 4 rows and 4 columns. In these cases, the Chi-Square Test is extended to accommodate the larger tables.

4. Question no 01 To check the relationship between two categorical variables: Check weather is there any relationship/association between two categorical variables at the 0.05 significance level : Right Handed Left Handed Male 43 09 Female 44 04

5. Question no 02 A researcher wants to know if there is an association between smoking status (Smoker, Non-Smoker) and the presence of lung disease (Diseased, Healthy) in a group of 200 individuals at the 0.05 significance level . The data is organized in a 2x2 contingency table: Diseased Healthy Smoker 50 30 Non-Smoker 20 100

6. Question no 03 A study is conducted to determine if there is an association between gender (Male, Female) and whether individuals prefer coffee or tea (Coffee, Tea) at the 0.05 significance level. The following data was collected: Coffee Tea Male 40 60 Female 30 70