You have conducted a study to determine if there is independence or dependence between market segments (A-C) and prices the segments are willing to pay for a product.  The following cross tabular output appears.         Under $10  $11-$15  over $15     All   A             50       30        20     100            50.00    30.00     20.00             33.33    27.27     50.00              16.67    10.00      6.67              50.00    36.67     13.33            0.000    1.212     3.333   B             40       50        10     100            40.00    50.00     10.00             26.67    45.45     25.00              13.33    16.67      3.33              50.00    36.67     13.33            2.000    4.848     0.833   C             60       30        10     100            60.00    30.00     10.00             40.00    27.27     25.00              20.00    10.00      3.33              50.00    36.67     13.33            2.000    1.212     0.833   All          150      110        40     300                                  Cell Contents:      Count or frequency                     Row percent                     Column percent                     Total cell percent                     Expected cell count                     Contribution to Chi-square   Pearson Chi-Square = 16.273, DF = 4, P-Value = 0.003   Set up the appropriate hypotheses to test that segments and price levels are independent. What percentage of segment B will pay between $11-$15?

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You have conducted a study to determine if there is independence or dependence between market segments (A-C) and prices the segments are willing to pay for a product.  The following cross tabular output appears.

 

      Under $10  $11-$15  over $15     All

 

A             50       30        20     100

           50.00    30.00     20.00 

           33.33    27.27     50.00  

           16.67    10.00      6.67  

           50.00    36.67     13.33

           0.000    1.212     3.333

 

B             40       50        10     100

           40.00    50.00     10.00 

           26.67    45.45     25.00  

           13.33    16.67      3.33  

           50.00    36.67     13.33

           2.000    4.848     0.833

 

C             60       30        10     100

           60.00    30.00     10.00 

           40.00    27.27     25.00  

           20.00    10.00      3.33  

           50.00    36.67     13.33

           2.000    1.212     0.833

 

All          150      110        40     300

          

       

           

 

Cell Contents:      Count or frequency

                    Row percent

                    Column percent

                    Total cell percent

                    Expected cell count

                    Contribution to Chi-square

 

Pearson Chi-Square = 16.273, DF = 4, P-Value = 0.003

 

  1. Set up the appropriate hypotheses to test that segments and price levels are independent.
  2. What percentage of segment B will pay between $11-$15?
  3.  
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