AWS Certified Machine Learning – SpecialtyExploratory Data AnalysisEasy

A data scientist is analyzing a dataset of customer demographics. They want to check if there is a statistically significant association between 'PreferredCommunicationChannel' (categorical: Email, SMS, Phone) and 'PurchaseFrequencyGroup' (categorical: Low, Medium, High). Which statistical test is most appropriate for this analysis?

  1. AANOVA
  2. BIndependent samples t-test
  3. CPearson correlation coefficient
  4. DChi-squared test of independence
Show answer & explanation

Correct answer: D. Chi-squared test of independence

The Chi-squared test of independence is used to determine if there is a statistically significant association between two categorical variables. In this scenario, both 'PreferredCommunicationChannel' and 'PurchaseFrequencyGroup' are categorical.

Why the other options are wrong

  • A. ANOVA compares means of a continuous variable across three or more groups.
  • B. An independent samples t-test compares means of a continuous variable between two groups.
  • C. Pearson correlation is for linear relationships between two continuous variables.

Chi-squared Test of Independence

A statistical test used to determine if there is a significant association between two categorical variables.

  • Compares observed frequencies to expected frequencies.
  • Null hypothesis: no association between variables.
  • Alternative hypothesis: there is an association.
  • Requires categorical data.

Memory trick: Categorical connections call for Chi-squared.

More Exploratory Data Analysis questions