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?
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
| 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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