Business Statistics

440 Business Statistics

an edible oil company may be in-

terested in knowing whether the

purchase of oil is independent of

the customer’s age or whether it is

dependent on the customer’s age.

These are two different situations

and the company has to frame a

production and selling strategy

accordingly. Another example

is that of the HRD manager of a

company who is interested in as-

certaining whether the rate of em-

ployee turnover is independent of

employee qualication.

When observations are clas-

sied on the basis of two vari-

ables and arranged in a table, the resulting table is referred to as a contingency table (Table 13.5). c

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