EXAMPLE 8.12 Relative Risk for Social Media in the Supply Chain

CASE 8.3 The following table summarizes the data on the proportions of social media use for small and large companies:

The relative risk for this sample is

Confidence intervals for the relative risk in the entire population of shoppers are based on this sample relative risk. Figure 8.9 gives output from JMP. Our summary: small companies are about 1.62 times as likely to use audio/visual sharing through social media as part of their supply chain as large companies; the 95% confidence interval is (1.24, 2.12).