Testing of Hypothesis

Here, the null hypothesis (Ho) is taken as:-

Advertisement do not have any influence on purchase

The observed frequencies are

‘O’ SA SWA NAND SWD SD Total

SA 18 10 3 4 2 37

SWA 11 9 2 4 3 29

NAND 8 4 6 2 2 22

SWS 3 1 1 2 0 7

SD 1 1 2 1 0 5

Total 41 25 14 13 7 100

Where; SA–Strongly Agree, SWA- Somewhat Agree, NAND- Neither Agree Nor
Disagree, SWD – Somewhat Disagree, SD- Strongly Disagree.
The expected Frequencies are computed as follows:-

E11 - 12*19/100 = 2.28

E12 - 12*27/100 = 3.24
E13 - 12*37/100 = 4.44
E14 - 12*12/100 = 1.44
E15 - 12*5/100 = 0.6
E21 - 27*19/100 = 5.13
E22 - 27*27/100 = 7.29
E23 - 27*37/100 = 9.99
E24 - 27*12/100 = 3.24
E25 - 27*5/100 = 1.35
E31 - 61*19/100 = 11.59
E32 - 61*27/100 = 16.47
E33 - 61*37/100 = 22.57
E34 - 61*12/100 = 7.32
E35 - 61*5/100 = 3.05
The table of expected frequencies is:-

‘E’ HS S NSND D HD Total

Frequentl 2.28 3.24 4.44 1.44 0.6 12

y
Once in a 5.13 7.29 9.99 3.24 1.35 27
while
Rarely 11.59 16.47 22.57 7.32 3.05 61

Total 19 27 37 12 5 100
 Calculation

Oi Ei Oi-Ei (Oi-Ei)² (Oi-Ei)²/ E

3 2.28 0.72 0.5184 0.2273
4 3.24 0.76 0.5776 0.1782
2 4.44 -2.44 5.9536 1.3409
1 1.44 -0.44 0.1936 0.1344
2 0.6 1.4 1.96 3.2666
11 5.13 5.87 34.4569 6.7167
7 7.29 -0.29 0.0841 0.01153
6 9.99 -3.99 15.9201 1.5963
2 3.24 -1.24 1.5376 0.4745
1 1.35 -0.35 0.1225 0.0907
5 11.59 -6.59 43.4281 3.747
16 16.47 -0.47 0.2209 0.0134
29 22.57 6.43 41.3449 1.8318
9 7.32 1.68 2.8224 0.3855
2 3.05 -1.05 1.1025 0.3614
Total = 20.01213

χ² = Σ (0-E) ²
E
Degree of freedom = (r-1) (c-1) = (3-1) (5-1) = 8
For degree of freedom = 8, χ² 0.05 =
Since the calculated value of χ² is much greater than the table value, therefore null
hypothesis is rejected on the basis of given data, we can, therefore conclude that
there is a association between rate of Customer Satisfaction and After Sales
Service provided by the organization.
 Chi-square Test

Relationship between Relevancy of Advertisement and purchase of insurance

policy
Null hypothesis (H0)
There is no significant relation between relevance of ad and purchase of insurance.
Alternative hypothesis(H1)
There is a significant relationship between relevance of ad and purchase of
insurance.

‘O’ SA SWA NAND SWD SD Total

SA 18 10 3 4 2 37

SWA 11 9 2 4 3 29

NAND 8 4 6 2 2 22

SWS 3 1 1 2 0 7

SD 1 1 2 1 0 5

Total 41 25 14 13 7 100
Relevancy :- The ad’s message is relevant to me
Purchase :- After viewing this ad, I’ll consider to buy the product

Interpretation

VALUE DEGREE OF TABLE VALUE AT 5%

FREEDOM SIGNIFICANCE

PEARSON 14.464 16 26.296

CHI-SQUARE
The study has applied chi-square test to prove statistically
whether there is any significant relation between the variable
used for the study. When tested at 5% level of significance, it is
found that calculated value is lower than the table value. Hence
null hypothesis is accepted.
Hence it is concluded that there is no significant relationship
between Relevancy of Advertisement and purchase of insurance
policy.