In the Journal of Marketing Research (November 1996), Gupta studied the extent to which the purchase behavior of scanner panels is representative of overall brand preferences. A scanner panel is a sample of households whose purchase data are recorded when a magnetic identification card is presented at a store checkout. The table below gives peanut butter purchase data collected by the A. C. Nielson Company using a panel of 2,500 households in Sioux Falls, South Dakota. The data were collected over 102 weeks. The table also gives the market shares obtained by recording all peanut butter purchases at the same stores during the same period.     Brand Size Number of Purchases by Household Panel Market Shares   Jif 18 oz.   3,165              20.10%      Jif 28        1,892              10.10         Jif 40        726              5.42         Peter Pan 10        4,079              16.01         Skippy 18        6,206              28.56         Skippy 28        1,627              12.33         Skippy 40        1,420              7.48                  Total   19,115                               Goodness-of-Fit Test   obs expected O – E (O – E)2/E % of chisq   3165    3842.115    –677.115     119.331      13.56         1892    1930.615    –38.615     0.772      0.09         726    1036.033    –310.033     92.777      10.54         4079    3060.312    1018.689     339.092      38.52         6206    5459.244    746.756     102.147      11.60         1627    2356.880    –729.880     226.029      25.68         1420    1429.802    –9.802     0.067      0.01                     19115    19115.000    0.000     880.216      100.00                        (b) Determine whether the purchase behavior of the panel of 2,500 households is consistent with the purchase behavior of the population of all peanut butter purchasers. Assume here that purchase decisions by panel members are reasonably independent, and set α = .05. (Round your answers x2 to 2 decimal places and x2.05 to 3 decimal places.)

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In the Journal of Marketing Research (November 1996), Gupta studied the extent to which the purchase behavior of scanner panels is representative of overall brand preferences. A scanner panel is a sample of households whose purchase data are recorded when a magnetic identification card is presented at a store checkout. The table below gives peanut butter purchase data collected by the A. C. Nielson Company using a panel of 2,500 households in Sioux Falls, South Dakota. The data were collected over 102 weeks. The table also gives the market shares obtained by recording all peanut butter purchases at the same stores during the same period.


 

  Brand Size Number of Purchases
by Household Panel
Market
Shares
  Jif 18 oz.   3,165              20.10%   
  Jif 28        1,892              10.10      
  Jif 40        726              5.42      
  Peter Pan 10        4,079              16.01      
  Skippy 18        6,206              28.56      
  Skippy 28        1,627              12.33      
  Skippy 40        1,420              7.48      
    

 

 
  Total   19,115               
    

 

 

 


 

  Goodness-of-Fit Test
  obs expected O – E (O – E)2/E % of chisq
  3165    3842.115    –677.115     119.331      13.56      
  1892    1930.615    –38.615     0.772      0.09      
  726    1036.033    –310.033     92.777      10.54      
  4079    3060.312    1018.689     339.092      38.52      
  6206    5459.244    746.756     102.147      11.60      
  1627    2356.880    –729.880     226.029      25.68      
  1420    1429.802    –9.802     0.067      0.01      
 

 

 

 

 

 

  19115    19115.000    0.000     880.216      100.00      
 

 

 

 

 

 

 


  

(b)

Determine whether the purchase behavior of the panel of 2,500 households is consistent with the purchase behavior of the population of all peanut butter purchasers. Assume here that purchase decisions by panel members are reasonably independent, and set α = .05. (Round your answers x2 to 2 decimal places and x2.05 to 3 decimal places.)

 

   
   χ2
Expert Solution
Step 1

Given information:

Brand Observed Market share
Jif 18 oz 3165 20.1%
Jif 28 oz 1892 10.1%
Jif 40 oz 726 5.42%
Petern Pan 10 oz 4079 16.01%
Skippy 18 oz 6206 28.56%
Skippy 28 oz 1627 12.33%
Skippy 40 oz 1420 7.48%
Sum 19115 100%
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