Question 1: Before the change of ownership, the company was encouraging its customers to reduce private labeling as a way to reduce cost of goods sold. Explore the distribution of customers by company sales. Does the distribution of customers (private label, brand label, or both) differ from what one would expect by chance?
1. Run a chi square goodness of fit using Type of Purchasing (PurType) as the variable with “all categories equal.”
2. Report the observed and expected values and the tests of statistical significance.
Question 2: The company received data from other similar stores in their geographic area.Using this data, does the distrubution of customers (private label, brand label, or both) differ from other stores in their area?
1. Run a chi square goodness of fit using Type of Purchasing (PurType) as the variable with 12, 26, and 12 as the expected values.
2. Report the observed and expected values and the tests of statistical significance.
Question 3: Is there a relationship between the type of purchasing and the structure of procurement?
1. Run chi-square independence test (crosstabs) using Type of Purchasing in the rows and Structure of Procurement (Structure) in the column.
2. Use the chi square and the phi coefficient to evaluate the relationship and statistical significance.
3. Report the observed and expected values and the tests of statistical significance.
Write a brief conclusion statement summarizing your results.What can you tell this company about the kinds of customers that use this facility?Is utilization in this company similar or different than other companies in the area? What type of customer is the most frequent user of these services?