Descriptive Statistics,

Cross Tabulation and

Hypothesis Testing
 15-2

1) Difference between descriptive and

inferential statistics
2) Frequency Distribution
3) Statistics Associated with Frequency
Distribution
i. Measures of Location
ii. Measures of Variability
iii. Measures of Shape
 15-3

4) Cross-Tabulations
i. Two Variable Case
ii. Three Variable Case

5) Introduction to Hypothesis Testing

Procedure for Hypothesis Testing
 15-4

Internet Usage Data

Respondent Sex Familiarity Internet Attitude Toward Usage of Internet
Number Usage Internet Technology Shopping Banking

1 1.00 7.00 14.00 7.00 6.00 1.00 1.00

2 2.00 2.00 2.00 3.00 3.00 2.00 2.00
3 2.00 3.00 3.00 4.00 3.00 1.00 2.00
4 2.00 3.00 3.00 7.00 5.00 1.00 2.00
5 1.00 7.00 13.00 7.00 7.00 1.00 1.00
6 2.00 4.00 6.00 5.00 4.00 1.00 2.00
7 2.00 2.00 2.00 4.00 5.00 2.00 2.00
8 2.00 3.00 6.00 5.00 4.00 2.00 2.00
9 2.00 3.00 6.00 6.00 4.00 1.00 2.00
10 1.00 9.00 15.00 7.00 6.00 1.00 2.00
11 2.00 4.00 3.00 4.00 3.00 2.00 2.00
12 2.00 5.00 4.00 6.00 4.00 2.00 2.00
13 1.00 6.00 9.00 6.00 5.00 2.00 1.00
14 1.00 6.00 8.00 3.00 2.00 2.00 2.00
15 1.00 6.00 5.00 5.00 4.00 1.00 2.00
16 2.00 4.00 3.00 4.00 3.00 2.00 2.00
17 1.00 6.00 9.00 5.00 3.00 1.00 1.00
18 1.00 4.00 4.00 5.00 4.00 1.00 2.00
19 1.00 7.00 14.00 6.00 6.00 1.00 1.00
20 2.00 6.00 6.00 6.00 4.00 2.00 2.00
21 1.00 6.00 9.00 4.00 2.00 2.00 2.00
22 1.00 5.00 5.00 5.00 4.00 2.00 1.00
23 2.00 3.00 2.00 4.00 2.00 2.00 2.00
24 1.00 7.00 15.00 6.00 6.00 1.00 1.00
25 2.00 6.00 6.00 5.00 3.00 1.00 2.00
26 1.00 6.00 13.00 6.00 6.00 1.00 1.00
27 2.00 5.00 4.00 5.00 5.00 1.00 1.00
28 2.00 4.00 2.00 3.00 2.00 2.00 2.00
29 1.00 4.00 4.00 5.00 3.00 1.00 2.00
30 1.00 3.00 3.00 7.00 5.00 1.00 2.00
 15-5

Frequency Distribution
In a frequency distribution, one variable is
considered at a time.
A frequency distribution for a variable
produces a table of frequency counts,
percentages, and cumulative percentages for
all the values associated with that variable.
 Frequency Distribution of 15-6

Familiarity
with the Internet
Cumulative
Value label Value Frequency (N) Percentage percentage

Not so familiar 1 0 0.0 0.0

2 2 6.7 6.9
3 6 20.0 27.6
4 6 20.0 48.3
5 3 10.0 58.6
6 8 26.7 86.2
Very familiar 7 4 13.3 100.0
Missing 9 1 3.3

TOTAL 30 100.0
 15-7

Frequency Histogram
8
7
6
Frequency

5
4
3
2
1
0
2 3 4 5 6 7
Familiarity
Statistics Associated with 15-8

Frequency Distribution
Measures of Location
X
n
The mean, or average value, is the most commonly used
measure of central tendency. The mean, ,is given by

Where, X= Σ X i /n
i=1
Xi = Observed values of the variable X
n = Number of observations (sample size)

The mode is the value that occurs most frequently. It

represents the highest peak of the distribution. The mode is
a good measure of location when the variable is inherently
categorical or has otherwise been grouped into categories.
Statistics Associated with 15-9

Frequency Distribution
Measures of Location

The median of a sample is the middle value

when the data are arranged in ascending or
descending order. If the number of data
points is even, the median is usually estimated
as the midpoint between the two middle
values – by adding the two middle values and
dividing their sum by 2. The median is the
50th percentile.
Statistics Associated with 15-10

Frequency Distribution
Measures of Variability
The range measures the spread of the data.
It is simply the difference between the largest
and smallest values in the sample. Range =
Xlargest – Xsmallest.
The interquartile range is the difference
between the 75th and 25th percentile. For a
set of data points arranged in order of
magnitude, the pth percentile is the value that
has p% of the data points below it and (100 -
p)% above it.
Statistics Associated with 15-11

Frequency Distribution
Measures of Variability

The variance is the mean squared deviation from

the mean. The variance can never be negative.
The standard deviation is the square root of the
variance.
n
(Xi - X)2
sx = Σi =1 n - 1
The coefficient of variation is the ratio of the
standard deviation to the mean expressed as a
percentage, and is a unitless measure of relative
variability.

CV = sx/X
Statistics Associated with 15-12

Frequency Distribution
Measures of Shape
Skewness. The tendency of the deviations from
the mean to be larger in one direction than in the
other. It can be thought of as the tendency for one
tail of the distribution to be heavier than the other.

Kurtosis is a measure of the relative peakedness

or flatness of the curve defined by the frequency
distribution. The kurtosis of a normal distribution is
zero. If the kurtosis is positive, then the distribution
is more peaked than a normal distribution. A
negative value means that the distribution is flatter
than a normal distribution.
 15-13

Skewness
Figure 15.2 of a Distribution
Symmetric
Distribution

Skewed Distribution

Mean
Media
n
Mode
(a)
Mean Median
Mode (b)
 15-14

Cross-Tabulation
While a frequency distribution describes one
variable at a time, a cross-tabulation
describes two or more variables
simultaneously.
Cross-tabulation results in tables that reflect
the joint distribution of two or more variables
with a limited number of categories or distinct
values.
 15-15

Gender and Internet

Usage
 15-16

Internet Usage by Gender

I nternet Us
 15-17

Gender by Internet Usage

Gender Ligh
 15-18

Purchase of Fashion Clothing by

Marital Status

Purchase of
Fashion
Clothing
 15-19

Purchase of Fashion Clothing by

Marital Status
Pur chase of Sex
Fashion Male Female
Clothing Marr ied Not Mar r ied Not
Mar r ied Mar r ied
High 35% 40% 25% 60%

Low 65% 60% 75% 40%

Column 100% 100% 100% 100%

totals
Number of 400 120 300 180
cases
 15-20

Ownership of Expensive
Automobiles by Education Level

Own Expensive
Automobile
Ownership of Expensive Automobiles 15-21

by Education Level and Income

Levels
Incom e
Ow n Low Incom e High Income
Ex pe nsive
Autom obile
Colle ge No Colle ge No Colle ge
De gre e Colle ge De gre e De gre e
De gre e

Ye s 20% 20% 40% 40%

No 80% 80% 60% 60%
Colum n tota ls 100% 100% 100% 100%
Num be r of 100 700 150 50
re spondents
 15-22

Desire to Travel Abroad by

Age

Desire to Travel Abr

 15-23

Desire to Travel Abroad by Age

and Gender
Desir e to Sex
Tr avel Male Female
Abr oad Age Age
< 45 >=45 <45 >=45

Yes 60% 40% 35% 65%

No 40% 60% 65% 35%

Column 100% 100% 100% 100%

totals
Number of 300 300 200 200
Cases
 15-24

Eating Frequently in Fast-Food

Restaurants by Family Size

Eat Frequently in F
Food Restaurants
Eating Frequently in Fast Food-
15-25

Restaurants
by Family Size & Income
Income
Eat Frequently in Fast- Low High
Food Restaurants
Family size Family size
Small Large Small Large
Yes 65% 65% 65% 65%
No 35% 35% 35% 35%
Column totals 100% 100% 100% 100%
Number of respondents 250 250 250 250
 15-26

Steps Involved in
Hypothesis Testing
Formulate H and H 0 1

Select Appropriate Test

Choose Level of Significance

Collect Data and Calculate Test Statistic

Determine Critical Value of Test Statistic

If the calculated value is less than the critical value,

accept the null hypothesis otherwise reject it

Reject or Do not Reject H0

Draw Marketing Research Conclusion

 Hypothesis Tests

Parametric Non-parametric
Tests (Metric Tests (Nonmetric
Tests) Tests)

One Sample Two or More One Sample Two or More

Samples Samples
* t test * Chi-
* Z test Square * K-
S
* Runs
* Binomial
Independe Paired
nt Samples Samples Independe Paired
* Two- nt Samples Samples
* Paired
Group t t test * Chi-Square * Sign
test * Mann- * Wilcoxon
* Z test Whitney * McNemar
* Median * Chi-
15-28