Course Content
Probability Distributions
Probability Distribution – Binomial, Poisson, Normal, and Exponential
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Facility Location and Layout
Site Selection and Analysis, Layout Design and Process
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Quality Management
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Unit VIII: Business Statistics and Operations Management

A contingency table, also known as a cross-tabulation (crosstab), is a type of table used in statistics to display the relationship between two categorical variables. It helps in analyzing patterns, dependencies, and associations between variables.


Structure of a Contingency Table

A contingency table consists of:

  • Rows → Represent categories of one variable.

  • Columns → Represent categories of another variable.

  • Cells → Contain the frequency (count) of occurrences for the combination of both variables.

  • Marginal Totals → The sum of each row and column.

  • Grand Total → The overall total of all observations.


Example: Contingency Table for Gender and Preferred Mode of Transport

A survey was conducted among 100 people to study the relationship between gender and preferred mode of transport.

Mode of Transport Male Female Total
Car 25 20 45
Bike 30 10 40
Public Transport 5 10 15
Total 60 40 100

Uses of Contingency Tables:

Chi-Square Test for Independence – Used to check if there is a significant relationship between two categorical variables.
Probability Calculations – Used in probability and decision-making.
Market Research & Surveys – Helps in understanding customer preferences.