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# Session 7

BRM-I
Parametric Non-parametric

## Assumed distribution Normal Any

Typical data Ratio or Interval Ordinal or Nominal
Usual central measure Mean Median
Simplicity; Less affected by
Benefits Can draw more conclusions
outliers
 Null hypothesis: A statement of no difference/effect. The hypotheses that are proposed
with the intent of receiving a rejection
 Alternative hypothesis: A statement that some difference/effect is expected. Rejection
of null hypotheses leads to the acceptance of alternative hypotheses

##  H0: Internet usage will be ≤ 14 hours a week, among millennial

 Ha: Internet usage will be > 14 hours a week, among millennial
 Usual way of writing hypothesis?
 If you have to write one, alternate hypotheses are written

##  One-tailed and two-tailed tests:

 One-sided (or one-tailed) only if the null hypothesis gets rejected when a value of the test
statistic falls in one specified tail
 Two sided- if it falls on both side of the tails
H0: Internet usage will be ≤ 14 hours a week, among millennial
Ha: Internet usage will be > 14 hours a week, among millennial

Test Results
Do Not Reject H0 Reject H0
H0 True Correct Decision Type I Error
(HA is accepted)
H0 Type II Error Correct Decision
Reality False (HA is rejected)

## Level of significance (α) -> probability of making type-I error

Probability of type-II error is denoted by β, power of a statistical test is (1- β)
Power of a test -> Probability of rejecting null hypothesis when it is false
Formulate H0 and H1

## Determine Probability Determine Critical Value of Test

Associated with Test Statistic Statistic TSCR

## Determine if TSCAL falls into

Compare with Level of (Non) Rejection Region
Significance, 

## Draw Marketing Research Conclusion

 Frequency distribution- A table of frequency counts, % and cumulative %

##  Cross tabulation – describes two or more variables simultaneously and

results in tables reflects joint distribution of two or more variables
 Two variables
 Three variables. Third variable helps to-
 Refine an initial relationship
 Initial relationship was spurious
 Reveal suppressed association
 No change in initial relationship
 Mean
 Median
 Mode
 Range
 Interquartile range
 Variance/standard deviation
 Coefficient of variation- unit less measure of relative variability
 CV =
sx / X
 Skewness –
 The tendency of the deviations from the mean to be larger in one
direction than in the other

 Kurtosis –
 A measure of the relative peakedness or flatness of the curve
defined by the frequency distribution
 The kurtosis of a normal distribution is zero.
 Positive value means distribution is more peaked than a normal distribution.
 Negative value means that the distribution is flatter than a normal distribution
Symmetric Distribution

Skewed Distribution

Mean
Median
Mode (a)

## Mean Median Mode (b)

Formulate H0 and H1

## Determine Probability Determine Critical Value of Test

Associated with Test Statistic Statistic TSCR

## Determine if TSCAL falls into

Compare with Level of (Non) Rejection Region
Significance, 

 Sex
 Male (1)
 Female (2)

##  Familiarity with the internet – (Scale 1 to 7)

 Very unfamiliar (1)
 Very familiar (7)

##  Internet usage in hours per week

 Actual (Later on: Converted to light users- <=5 hours, heavy users>5 hours)
 Attitude towards internet- (Scale 1 to 7)
 Very unfavourable (1)
 Very favourable (7)

##  Attitude towards technology

 Very unfavourable (1)
 Very favourable (7)

 Whether the respondent has done internet shopping – Yes (1), No (2)
 Whether the respondent has done internet banking – Yes (1), No (2)