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 No Yes Column total Below Industry Average 4 10 14 Delivery Time Equal to Industry Average 12 4 16 Above Industry Row Average Total 8 2 HO. independence. 10 24 16 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 a = .05?

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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
No
Yes
Column total
Below
Industry
Average
4
10
14
Delivery Time
Equal to
Industry
Average
12
4
16
Above
Industry
Average
8
2
10
HO. independence.
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 a = .05?
(b) Verify that a chi-square test is appropriate.
Row
Total
The test is valid because the number of cells exceeds
and the smallest Éij is greater than
24
16
40
the average of the Eij is greater than
Transcribed Image Text: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 No Yes Column total Below Industry Average 4 10 14 Delivery Time Equal to Industry Average 12 4 16 Above Industry Average 8 2 10 HO. independence. 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 a = .05? (b) Verify that a chi-square test is appropriate. Row Total The test is valid because the number of cells exceeds and the smallest Éij is greater than 24 16 40 the average of the Eij is greater than
(b) Verify that a chi-square test is appropriate.
The test is valid because the number of cells exceeds
and the smallest Eij is greater than
the average of the Eij is greater than
(c) Is there a difference between delivery-time performance between firms using computer-assisted ordering and those not using
computer-assisted ordering?
Yes
No
Transcribed Image Text:(b) Verify that a chi-square test is appropriate. The test is valid because the number of cells exceeds and the smallest Eij is greater than the average of the Eij is greater than (c) Is there a difference between delivery-time performance between firms using computer-assisted ordering and those not using computer-assisted ordering? Yes No
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