4 A new allpurpose cleaner is being testmarketed by placing

4. A new all-purpose cleaner is being test-marketed by placing sales displays in three different locations within various supermarkets. The number of bottles sold from each location within each of the supermarkets being tested in reported here:

Location I:               40       35       44       38

Location II:              32       38       30       35

Location III:             45       48       50       52

Using =0.01, does the location of the sales display have an effect on the number of bottles sold?

Solution

H0: There is relation between location and number of bottles sold

Ha: There is no relation

Chi square two tailed test.

Prepare chisquare contingency table

chi-square = 2.40
degrees of freedom = 6
probability = 0.880

As p value > 0.01 accept null hypothesis.

The location of the sales display does have an effect on the number of bottles sold