Chi Square Test

Chi square test:
For finding the relationship between different factors, we have conducted chi square test. For this, we
had made some assumptions or hypothesis regarding helmets, which were checked for
acceptance or rejection using the data that we collected from the survey. For this purpose, SPSS
was used. The following are the hypotheses and the observations:
1. H0: There is significant relationship between income and purchase decision.

H1: There is no significant relationship between income and purchase decision.
The results of the test are shown below:
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
15. Indicate your preference 87 69.6% 38 30.4% 125 100.0%

between 1 and un1 helmet. * 26.
Annual Household Income (in
Rs.)
15. Indicate your preference between 1 and un1 helmet. * 26. Annual Household Income (in Rs.) Crosstabulation
Count
26. Annual Household Income (in Rs.) Total
Less than 2 lakhs 2 lakhs - 6 lakhs 6 lakhs - 10 lakhs More than 10 lakhs
15. Indicate your preference Branded 14 41 12 7 74

between 1 and un1 helmet.
Unbranded 2 7 2 2 13
Total 16 48 14 9 87
Chi-Square Tests
Asymp. Sig. (2-

Value df sided)
Pearson Chi-Square .460a 3 .928
Likelihood Ratio .423 3 .935
Linear-by-Linear Association .319 1 .572
N of Valid Cases 87
a. 3 cells (37.5%) have expected count less than 5. The minimum expected count
is 1.34.
Indicate preference between branded and unbranded helmet
The significance value is 0.928.
It is greater than α(0.05)
So, we will accept the null hypothesis.

There is no significant association between income and preference of brand.
2. H0 : Age and Preference of branded helmets are independent
H1 : Age has an impact on the Preference of branded helmets
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
15. Indicate your preference 84 67.2% 41 32.8% 125 100.0%

between 1 and un1 helmet. * 24.
Age
15. Indicate your preference between 1 and un1 helmet. * 24. Age Crosstabulation
Count
24. Age Total
18-25 Years 26-35 Years 36-50 Years 50 years and above
15. Indicate your preference Branded 47 13 8 4 72

between 1 and un1 helmet.
Unbranded 7 2 0 3 12
Total 54 15 8 7 84
Chi-Square Tests
Asymp. Sig. (2-

Value df sided)
Pearson Chi-Square 6.088a 3 .107
Likelihood Ratio 5.905 3 .116
Linear-by-Linear Association 1.323 1 .250
N of Valid Cases 84
a. 3 cells (37.5%) have expected count less than 5. The minimum expected count
is 1.00.
Here the significance level is 0.107

It is less than α(0.05)
So, we will reject null hypothesis.
There is significant association between age and preference of brand.
Factor Analysis:
We conducted a factor analysis of 10 variables in order to reduce the 10 variables to get a smaller
set of (preferably uncorrelated) variables and in order to create indexes with variables that
measure similar things.
1.price 6.weight
2.style/design 7.need for visor
3.color 8.Availability
4.comfort 9.option for various sizes
5.ventilation 10.Brand name
Sampling Adequacy:
Since the sampling adequacy(0.796) is greater than our benchmark value of 0.5 and is
statistically significant, our sample size is adequate and could be taken up for factor analysis
Factor Extraction:
On extraction of factors having Eigen value greater than 1, the initial number of 10 variables are reduced
to 2. The first two factors explain about 59.073% of total variance.
Communalities:
The communalities reflect common variance in the data structure. They also explain the
proportion of variance explained by the underlying factor. For example, here, 62.2% of the
variance associated with price is shared.
Data Reduction:
After conducting factor analysis, the 10 variables were reduced to two and were given
appropriate names as follows:
Factor 1: Factor 2:
Ventilation Price
Weight Style/design
Need for Visor Color
Availability Comfort
Option for various sizes
Brand name
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .796
Bartlett's Test of Sphericity Approx. Chi-Square 367.880
df 45
Sig. .000
Communalities
Initial Extraction
14. The following factors are 1.000 .622

important for you while
purchasing a helmet. [Price]

purchasing a helmet.
[Style/Design]

purchasing a helmet. [Color]

purchasing a helmet. [Comfort]
[Ventilation]

purchasing a helmet. [Weight]

purchasing a helmet. [Need for
visor]

[Availability]

purchasing a helmet. [Option
for various size]

purchasing a helmet. [Brand
Name]
Extraction Method: Principal Component Analysis.
Total Variance Explained
Initial Eigenvalues Extraction Sums of Squared Loadings

Compon
ent Total % of Variance Cumulative % Total % of Variance Cumulative %
1 4.424 44.239 44.239 4.424 44.239 44.239
2 1.483 14.834 59.073 1.483 14.834 59.073
3 .981 9.808 68.881
4 .862 8.621 77.503
5 .677 6.769 84.271
6 .518 5.183 89.454
7 .439 4.394 93.848
8 .269 2.694 96.542

9 .185 1.849 98.390
10 .161 1.610 100.000
Rotated Component Matrixa
Component
1 2
14. The following factors are -.044 .788

14. The following factors are .141 .827

[Style/Design]



[Ventilation]


visor]

[Availability]
for various size]

Name]

Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 3 iterations.
Cluster analysis:
Cluster analysis or clustering is the assignment of a set of observations into subsets
(called clusters) so that observations in the same cluster are similar in some sense.
We conducted a cluster analysis on all our data sets to group them into clusters of various demographic
variables.
The various demographic variables are as follows:
 Age
 Gender
 Income level
From these, we choose Age to cluster our data.
Depending on age, total data is divided into 4 clusters
 18-25 years
 26-35 years
 36-50 years
 Above 50 years
Factor Analysis on the first cluster:
Sampling adequacy:
Since the sampling adequacy(0.789) is greater than our benchmark value of 0.5 and is
statistically significant, our sample size is adequate and could be taken up for factor analysis
Communalities:
The communalities reflect common variance in the data structure. They also explain the
proportion of variance explained by the underlying factor. For example, here, 64.5 % of the
variance associated with price is shared.
Factor Extraction:
On extraction of factors having Eigen value greater than 1, the initial number of 10 variables are reduced
to 2. The first two factors explain about 62.05% of total variance.
Data Reduction:
After conducting factor analysis, the 10 variables were reduced to two and were given
appropriate names as follows:
Factor 1: Factor 2:
Price Need for Visor
Style/Design Availability
Color Option for various sizes
Comfort Ventilation
Weight
Brand name
As it is evident from the above clustering, the differences in the grouping of different factors are
due to clustering of the data.
We did not conduct a factor analysis on the remaining three clusters because of sampling
inadequacy.
KMO and Bartlett's Testa
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .789
Bartlett's Test of Sphericity Approx. Chi-Square 253.116
df 45
Sig. .000
a. Only cases for which 24. Age = 18-25 Years are used in the analysis phase.
Communalitiesa
Initial Extraction


[Style/Design]



[Ventilation]


visor]

[Availability]

for various size]
Name]
a. Only cases for which 24. Age = 18-25 Years are used in the
analysis phase.
Initial Eigenvalues Extraction Sums of Squared Loadings
Component Total % of Variance Cumulative % Total % of Variance Cumulative %
1 4.500 44.999 44.999 4.500 44.999 44.999
2 1.705 17.052 62.050 1.705 17.052 62.050
3 .957 9.568 71.618
4 .815 8.155 79.773
5 .617 6.169 85.942
6 .516 5.157 91.099
7 .391 3.913 95.012
8 .224 2.236 97.248
9 .155 1.548 98.797
10 .120 1.203 100.000
Rotated Component Matrixa,b
Component
1 2
14. The following factors are .796 -.104


[Style/Design]


[Ventilation]


visor]

[Availability]

for various size]

Name]

Rotation Method: Varimax with Kaiser Normalization.
a. Rotation converged in 3 iterations.
b. Only cases for which 24. Age = 18-25 Years are used in
the analysis phase.

Chi Square Test

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Chi square test:

1. H0: There is significant relationship between income and purchase decision.

The results of the test are shown below:

Case Processing Summary

Valid Missing Total

N Percent N Percent N Percent

15. Indicate your preference 87 69.6% 38 30.4% 125 100.0%

26. Annual Household Income (in Rs.) Total

15. Indicate your preference Branded 14 41 12 7 74

Asymp. Sig. (2-

Pearson Chi-Square .460a 3 .928

Likelihood Ratio .423 3 .935

Linear-by-Linear Association .319 1 .572

Indicate preference between branded and unbranded helmet

The significance value is 0.928.

It is greater than α(0.05)

So, we will accept the null hypothesis.

2. H0 : Age and Preference of branded helmets are independent

H1 : Age has an impact on the Preference of branded helmets

Case Processing Summary

Valid Missing Total

N Percent N Percent N Percent

15. Indicate your preference 84 67.2% 41 32.8% 125 100.0%

24. Age Total

18-25 Years 26-35 Years 36-50 Years 50 years and above

15. Indicate your preference Branded 47 13 8 4 72

Asymp. Sig. (2-

Pearson Chi-Square 6.088a 3 .107

Likelihood Ratio 5.905 3 .116

Linear-by-Linear Association 1.323 1 .250

Here the significance level is 0.107

So, we will reject null hypothesis.

There is significant association between age and preference of brand.

2.style/design 7.need for visor

4.comfort 9.option for various sizes

5.ventilation 10.Brand name

Need for Visor Color

Option for various sizes

KMO and Bartlett's Test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .796

Bartlett's Test of Sphericity Approx. Chi-Square 367.880

14. The following factors are 1.000 .622

14. The following factors are 1.000 .703

14. The following factors are 1.000 .746

14. The following factors are 1.000 .795

14. The following factors are 1.000 .730

14. The following factors are 1.000 .472

14. The following factors are 1.000 .565

14. The following factors are 1.000 .508

14. The following factors are 1.000 .208

Extraction Method: Principal Component Analysis.

Total Variance Explained

Initial Eigenvalues Extraction Sums of Squared Loadings

1 4.424 44.239 44.239 4.424 44.239 44.239

2 1.483 14.834 59.073 1.483 14.834 59.073

3 .981 9.808 68.881

4 .862 8.621 77.503

5 .677 6.769 84.271

6 .518 5.183 89.454

7 .439 4.394 93.848

8 .269 2.694 96.542

10 .161 1.610 100.000