Question
Allen is a marketing and retail analyst for a marketing firm. One aspect of his job is to track sports clothing sales and uncover any
Allen is a marketing and retail analyst for a marketing firm. One aspect of his job is to track sports clothing sales and uncover any particular trends that may be unfolding in the industry. Recently he has been following Under Armor- a pioneer in the compression-gear market. Under Armor went public in 2005 and experienced significant growth. That said, Nike Inc. and Adidas Group (with market shares of 18% and 10% respectively) are also key players in the market (The Wall Street Journal, October 23, 2007). As part of his analysis, Allen would like to examine whether the age of the customer matters when buying compression clothing. His initial feeling is that the Nike brand attracts younger customers. Allen gathers data on 500 recent purchases in the compression-gear market as he knows this information will be useful to advertisers and retailers. Of the 500 customers surveyed, 253 are under 35 years old. Of those under 35 years old, 90 made a purchase from Under Armor and 121 made a purchase from Nike. Of those who purchased from Nike, 93 were over 35 years old. Of those who were over 35, 80 purchased from Adidas.
Please help Allen by: 1. Creating a contingency table with the above information. This table should be presentation worthy.(4 points)
2. Determining if someone under the age of 35 is more likely to purchase from Nike than theother retailers (hint use probability equations). (10 points)
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