Two tools that are often used in this process are the contingency table and the decision tree. What are these tools and how to they help us to make decisions under uncertainty when we are dealing with probabilities? Please offer an example of how you may use these tools to help make a business decision.© BrainMass Inc. brainmass.com October 25, 2018, 2:13 am ad1c9bdddf
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In statistics, contingency tables are used to record and analyze the relationship between two or more variables, most are usually categorical variables.
Suppose that we have two variables, sex (male or female) and handedness (right- or left-handed). We observe the values of both variables in a random sample of 100 people. Then a contingency table can be used to express the relationship between these two variables, as follows:
right-handed left-handed TOTAL
male 43 9 52
female 44 4 48
TOTAL 87 13 100
The figures in the right-hand column and the bottom row are called marginal totals and the figure in the bottom right-hand corner is the ...
Statistics Contingency table and decision tree: How are they used with examples.
Explain in managerial terms the effect of
To answer the question below, I was instructed to utilize one or more of the following techniques:
-Confidence intervals and hypothesis testing
-Decision trees (and their use in solving managerial problems),
-Critical fractile analysis (and its use in determining optimal demand levels),
-Analysis of variance/ANOVA (and its use in understanding differences between group means),
-Chi-square (cross tabs/contingency table) analysis (and its use in determining differences between group proportions),
-Regression, single and multiple (and its use in understanding relationships between dependent and independent (explanatory) variables), and
-Optimization modeling (and its use in determining the best solution given a set of constraint).
You are a brand manager and have been running TV ads to market your product. However, you are considering running a series of spots that specifically targets wealthy consumers. The spots will cost $2K out of your $100K advertising budget. You estimate the market potential for wealthy consumers to be $250K. You hire a marketing research firm to conduct a survey that will help you determine if wealthy consumers will respond more favorably to the spots targeted towards them than the general spots. The researcher suggests you "use an alpha level = .05."
a. Explain in managerial terms what is meant by "use an alpha level = .05." Do you agree with her suggestion? If so, explain why. If not, explain why and indicate the alpha level you would use instead.
b.After conducting the research, the researcher reports that wealthy consumers did in fact respond more favorably to the spots targeted towards them than the general spots (p = .12). Explain in managerial terms what is meant by p = .12. Given your answer to question 1a, what managerial action would you undertake?View Full Posting Details