The marketing department of ABC Ltd is interested in assessing whether those people who currently buy cars from a rival do so because they view ABC’s cars as being of poor quality. In carrying out a survey, the marketing department asked 200 people two questions. Firstly, have you purchased a car from ABC in the last month? Secondly, which of the following best describes your view of the quality of cars sold by ABC? The responses to these questions are shown in the Table below. Is there evidence of an association between customers’ purchasing behaviour and their perception of the quality of cars sold by ABC Ltd? Explain your results in terms that would be comprehensible to a manager with little knowledge of statistics.
Correlation
Correlation defines a relationship between two independent variables. It tells the degree to which variables move in relation to each other. When two sets of data are related to each other, there is a correlation between them.
Linear Correlation
A correlation is used to determine the relationships between numerical and categorical variables. In other words, it is an indicator of how things are connected to one another. The correlation analysis is the study of how variables are related.
Regression Analysis
Regression analysis is a statistical method in which it estimates the relationship between a dependent variable and one or more independent variable. In simple terms dependent variable is called as outcome variable and independent variable is called as predictors. Regression analysis is one of the methods to find the trends in data. The independent variable used in Regression analysis is named Predictor variable. It offers data of an associated dependent variable regarding a particular outcome.
The marketing department of ABC Ltd is interested in assessing whether those people
who currently buy cars from a rival do so because they view ABC’s cars as being of poor
quality. In carrying out a survey, the marketing department asked 200 people two
questions. Firstly, have you purchased a car from ABC in the last month? Secondly, which
of the following best describes your view of the quality of cars sold by ABC? The responses
to these questions are shown in the Table below.
Is there evidence of an association between customers’ purchasing behaviour and their perception of the quality of cars sold by ABC Ltd? Explain your results in terms that would be comprehensible to a manager with little knowledge of statistics.
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