After consulting your marketing information system you mention at a meeting that your target markets are broken down in the following percentages: Market A is 24%; Market B is 11%; Market C is 39%; Market D is 14.5%; Market E is 11.5%. The market research manager really doubts that your percentages are accurate and he refers to a recent study where 1,000 samples were obtained. This table appears below. Estimated Market Percentages Sampled Freq. Target markets 0.240 250 A 0.110 100 B 0.390 400 C 0.145 150 D 0.115 100 E In an attempt to save face, you decide to perform a test to corroborate that your estimated market percentages are realistic. Another way of phrasing this is that the sampled frequencies basically conform to your theoretical market percentages. Set up your hypotheses, conduct the analysis, and report your results and conclusions.
After consulting your marketing information system you mention at a meeting that your target markets are broken down in the following percentages: Market A is 24%; Market B is 11%; Market C is 39%; Market D is 14.5%; Market E is 11.5%. The market research manager really doubts that your percentages are accurate and he refers to a recent study where 1,000 samples were obtained. This table appears below.
Estimated Market Percentages Sampled Freq. Target markets
0.240 250 A
0.110 100 B
0.390 400 C
0.145 150 D
0.115 100 E
In an attempt to save face, you decide to perform a test to corroborate that your estimated market percentages are realistic. Another way of phrasing this is that the sampled frequencies basically conform to your theoretical market percentages.
Set up your hypotheses, conduct the analysis, and report your results and conclusions.
Null and Alternate Hypothesis:
H0: The distribution is same as market percentage
HA: The distribution is not same as market percentage
| Observed (O) | Expected (E) | |
| 250 | 0.4167 | |
| 100 | 0.9091 | |
| 400 | 0.2564 | |
| 150 | 0.1724 | |
| 100 | 1.9565 |
Test Statistics:
P-value:
Degree of freedom=n-1=5-1=4
Using chi-square distribution
P-value=0.4465
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