MGMTW3IP

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Colorado Technical University *

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601

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Business

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Feb 20, 2024

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MGMT601W3IP 1 MGMT601-Unit 3 Individual Project Misty D’Spain Colorado Technical University
MGMT601W3IP 2 Use Common Statistical Tests to Draw Conclusions from Data This project will explore the application of the chi-square distribution tool to support our decision to evaluate whether to broaden our horizon on market expansion or maintain our current situation with our sporting goods client. We detect that we do not have adequate data for a chi-square analysis, we will validate the initial steps of a nonparametric test, centering on qualitative aspects. Understanding Chi-Square and Hypothesis Testing The chi-square distribution is a statistical tool used for hypothesis testing in nonparametric settings, which means it does not rely on specific assumptions about the data’s distribution. Instead, it examines the relationship between two categorical variables to determine if they are independent or if they are independent or if there is a significant association between them. The chi-square test helps make informed decisions by assessing the relevance and significance of observed data. The data used in calculating a chi-square statistic must be random, raw, mutually exclusive, drawn from independent variables, and drawn from a large enough sample (Hayes, 2021). The Big D Scenario In this study, working with the “Big D” scenario, considering two proposed product lines in the outdoor sporting goods market. Assuming the same demographics that are utilized for each product, meaning that we have data on the same group of potential customers. Initial Steps of a Nonparametric Test 1. Null and Alternative Hypothesis: The first step in applying the chi-square test is formulating null (H0) and alternative (H1) hypotheses. In the scenario, the null hypothesis could be that there is no significant difference in customer preferences between the two proposed product lines, meaning they are equally likely to succeed in the market. The alternative hypothesis would be that there is a significant difference, suggesting that one product line is more likely to be successful than the other.
MGMT601W3IP 3 Null Hypothesis (H0): There is no significant difference in customer preferences between the two proposed product lines. Alternative Hypothesis (H1): There are significant differences in customer preferences between the two proposed product lines. 1. Data Collection and Analysis: To initiate the chi-square process, we would need to collect data related to customer preferences for the two product lines. This data could include surveys, focus groups, or market research. We would then organize this data into a contingency table, which would allow us to compare the observed and expected frequencies of the preferences for each product line. (2) Data Collection and Analysis: To initiate the chi-square process, we would need to collect data related to customer preferences for the two product lines. This data could include surveys, focus groups, or market research. We would then organize this data into a contingency table, allowing us to compare the observed and expected frequencies of the preferences for each product line. (3) Chi-Square Statistic and P-value: After organizing the data, we calculate the chi-square statistic and the associated p-value. The chi-square statistic quantifies the difference between the observed and expected frequencies, the p- value indicates the probability of observing such a difference by chance. The chi-square statistic compares the size of any discrepancies between the expected results and the actual results, given the size of the sample and the number of variables in the relationship (Hayes, 2021), Implications for the Board of Directors and Decision-Making: (1) Hypothesis Testing Outcome: The chi-square test will provide valuable insights into whether there is a statistically significant difference in customer preferences between the two proposed product lines. If
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