In the book Essentials of Marketing Research, William R. Dillon, Thomas J. Madden, and Neil A. Firtle discuss the relationship between delivery time and computer-assisted ordering. A sample of 40 firms shows that 16 use computer-assisted ordering, while 24 do not. Furthermore, past data are used to categorize each firm’s delivery times as below the industry average, equal to the industry average, or above the industry average. The results obtained are given in the table below. A Contingency Table Relating Delivery Time and Computer-Assisted Ordering Computer-AssistedOrderingBelowIndustryAverageDelivery TimeEqual toIndustryAverageAboveIndustryAverageRowTotalNo412824Yes104216Column total14161040 Click here for the Excel Data File (a) Test the hypothesis that delivery time performance is independent of whether computer-assisted ordering is used. What do you conclude by setting α = .05? (b) Verify that a chi-square test is appropriate. (c) Is there a difference between delivery-time performance between firms using computer-assisted ordering and those not using computer-assisted ordering?

Hypothesis test is the statistical analysis in which analyst test the assumptions regarding the…

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Author:Amos Gilat

Publisher:Amos Gilat

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In the book Essentials of Marketing Research, William R. Dillon, Thomas J. Madden, and Neil A. Firtle discuss the relationship between delivery time and computer-assisted ordering. A sample of 40 firms shows that 16 use computer-assisted ordering, while 24 do not. Furthermore, past data are used to categorize each firm’s delivery times as below the industry average, equal to the industry average, or above the industry average. The results obtained are given in the table below.

A Contingency Table Relating Delivery Time and Computer-Assisted Ordering

Computer- Assisted Ordering	Below Industry Average	Delivery Time Equal to Industry Average	Above Industry Average	Row Total
No	4	12	8	24
Yes	10	4	2	16
Column total	14	16	10	40

Click here for the Excel Data File

(a) Test the hypothesis that delivery time performance is independent of whether computer-assisted ordering is used. What do you conclude by setting α = .05?

(b) Verify that a chi-square test is appropriate.

(c) Is there a difference between delivery-time performance between firms using computer-assisted ordering and those not using computer-assisted ordering?

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