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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

Select Appropriate Test

Choose Level of Significance

Collect Data and Calculate Test Statistic

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, 

Reject or Do not Reject H0

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

Select Appropriate Test

Choose Level of Significance

Collect Data and Calculate Test Statistic

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, 

Reject or Do not Reject H0

Draw Marketing Research Conclusion


 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)