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MGMT600-1301A-05: Applied Managerial Decision-Making
To use the Chi-square distribution, the quantitative variable sales volume has to be converted into categories or groups such as “Achieved Target” vs. “Did not achieve target”.
1) A chi-square test that can be carried out in this context is to see whether the automated contact system affects whether or not the sales force achieve their targets.
Null Hypothesis (HO): There is no relationship between the use of the automated contact system and sales targets being achieved.
Alternative Hypothesis (Ha): There is a significant relationship between the use of the automated contact system and the sales targets being achieved.
2) Another …show more content…
Alternative Hypothesis (Ha): There is a significant relationship between the sales region and sales targets being achieved.
Null: There is no relationship between use of software program and performance of sales person
Alternative: The performance of sales person depends upon the use of software program Then collect the data on the actual number of products sold by these people and form the cross-table
Region/Software use NE SE Central West Total
Yes X1 X2 X3 X4 Row 1
No X5 X6 X7 X8 Row 2
Total Col 1 Col2 Col3 Col4 Grand Total
Now calculate the expected number in each cell in the cross-tab. Expected frequency=Row Total*Column
Chi-square statistics= summation of {(Expected frequency-Observed frequency) ^2/Expected frequency}
Then see the critical value of chi-square from table, here we have degree of freedom as (no. of row -1)*(no. of column-1) = (4-1)*(2-1) =4
Then see the critical value at desired level of significance (normally 5%).
If the observed value of chi-square is more than the critical value, then there is a relationship between the performance of sales people and software. Otherwise, there is no