Comparing purchasers and nonpurchasers of toothpaste.

Chapter 8, Problem 109SE

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QUESTION:

Comparing purchasers and nonpurchasers of toothpaste. Marketing strategists would like to predict consumer response to new products and their accompanying promotional schemes. Consequently, studies that examine the differences between buyers and nonbuyers of a product are of interest. One classic study conducted by Shuchman and Riesz (Journal of Marketing Research) was aimed at characterizing the purchasers and nonpurchasers of Crest toothpaste. The researchers demonstrated that both the mean household size (number of persons) and mean household income were significantly larger for purchasers than for nonpurchasers. A similar study used independent random samples of size 20 and yielded the data shown in the following table on the age of the householder primarily responsible for buying toothpaste.

a. Do the data present sufficient evidence to conclude there is a difference in the mean age of purchasers and nonpurchasers? Use \(\alpha=.10\).

b. What assumptions are necessary in order to answer part a?

c. Find the observed significance level for the test and interpret its value.

d. Calculate and interpret a 90% confidence interval for the difference between the mean ages of purchasers and nonpurchasers.

Questions & Answers

QUESTION:

Comparing purchasers and nonpurchasers of toothpaste. Marketing strategists would like to predict consumer response to new products and their accompanying promotional schemes. Consequently, studies that examine the differences between buyers and nonbuyers of a product are of interest. One classic study conducted by Shuchman and Riesz (Journal of Marketing Research) was aimed at characterizing the purchasers and nonpurchasers of Crest toothpaste. The researchers demonstrated that both the mean household size (number of persons) and mean household income were significantly larger for purchasers than for nonpurchasers. A similar study used independent random samples of size 20 and yielded the data shown in the following table on the age of the householder primarily responsible for buying toothpaste.

a. Do the data present sufficient evidence to conclude there is a difference in the mean age of purchasers and nonpurchasers? Use \(\alpha=.10\).

b. What assumptions are necessary in order to answer part a?

c. Find the observed significance level for the test and interpret its value.

d. Calculate and interpret a 90% confidence interval for the difference between the mean ages of purchasers and nonpurchasers.

ANSWER:

Step 1 of 4

a) 

Let \({\mu _1}\) = Mean age of Purchasers and \({\mu _2}= Mean age of Non Purchasers.

The hypothesis of interest is,

\({H_0}:{\mu _1} = {\mu _2}\), i.e., there is no significant difference between the Mean age of Purchasers and Non-purchasers.

\({H_a}:{\mu _1} \ne {\mu _2}\), i.e., there was a significant difference between the Mean age of Purchasers and Non-purchasers.

Age of Purchasers (\({\overline x _1}\)):

Age of Purchasers (\({x_1}\))                                                                  

\({x_1} - {\overline x _1}\)                                                           

\({\left( {{x_1} - {{\overline x }_1}} \right)^2}\)                                                                            

34

–5.8

33.64

35

–4.8

23.04

23

–16.8

282.24

44

4.2

17.64

52

12.2

148.84

46

6.2

38.44

28

–11.8

139.24

48

8.2

67.24

28

–11.8

139.24

34

–5.8

33.64

33

–6.8

46.24

52

12.2

148.84

41

1.2

1.44

32

–7.8

60.84

34

–5.8

33.64

49

9.2

84.64

50

10.2

104.04

45

5.2

27.04

29

10.8

116.64

59

19.2

368.64

\({\overline x _1} = 39.8\)

 

\(\sum {{{\left( {{x_1} - {{\overline x }_1}} \right)}^2} = 1915.2}\)  

The mean of sample 1 \({\overline x _1}\) is 39.8.

Age of Non purchasers (\({\overline x _2}\)):

Age of Non-Purchasers (\({x_2}\))                         

\({x_2} - {\overline x _2}\)                    

\({\left( {{x_2} - {{\overline x }_2}} \right)^2}\)              

28

–19.2

368.64

22

–25.2

635.04

44

–3.2

10.24

33

–14.2

201.64

55

7.8

60.84

63

15.8

249.64

45

–2.2

4.84

31

–16.2

262.44

60

12.8

163.84

54

6.8

46.24

53

5.8

33.64

58

10.8

116.64

52

4.8

23.04

52

4.8

23.04

66

18.8

353.44

35

–12.2

148.84

25

–22.2

492.84

48

0.8

0.64

59

11.8

139.24

61

13.8

190.44

\({\overline x _2} = 47.2\)

 

\(\sum {{{\left( {{x_2} - {{\overline x }_2}} \right)}^2} = 3525.2} \)

The mean of sample 2 \({\overline x _2}\) is 47.2.

The pooled variance can be calculated as,

\(S_P^2 = \frac{{\sum {{{\left( {{x_1} - {{\overline x }_1}} \right)}^2}}  + \sum {{{\left( {{x_2} - {{\overline x }_2}} \right)}^2}} }}{{{n_1} + {n_2} - 2}}\) 

Here \({n_1},{n_2}\) are the sizes of the samples, which are 20. Substitute the values in the above formula, and we get,

\(S_P^2 = \frac{{1915.2 + 3525.2}}{{20 + 20 - 2}}\)

\(S_P^2 = \frac{{1915.2 + 3525.2}}{{38}}\)

\(S_P^2 = 143.17\)

The test statistic can be determined as,

\(t = \frac{{{{\overline x }_1} - {{\overline x }_2}}}{{\sqrt {S_P^2\left( {\frac{1}{{{n_1}}} + \frac{1}{{{n_2}}}} \right)} }}\) 

Substitute the values in the above formula, and we get,

\(t = \frac{{39.8 - 47.2}}{{\sqrt {143.17\left( {\frac{1}{{20}} + \frac{1}{{20}}} \right)} }}\)

\(t =  - 1.96\)

The degree of freedom is \({n_1} + {n_2} - 2 = 20 + 20 - 2 = 38\).

For df = 38 at\( \alpha  = 0.10\) and we find the critical value as \({t_{\alpha /2}} = 1.69\).

The value of the test statistic falls in the rejection region, and We reject the null hypothesis \({H_0}\). 

Hence, the data present has sufficient evidence to conclude there is a difference in the mean age of purchasers and non-purchasers.

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