EXAMPLE 9.3 The Two-Way Table
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Two categorical variables were measured for each company. Each company was classified according to competitiveness—“High” or “Medium”—and according to flexibility—“Adaptive,” “Parallel,” or “Preemptive.” The study author described a theory where more flexibility could lead to more competitiveness. Therefore, we treat flexibility as the explanatory variable here and make it the column variable. Here is the table with the marginal totals:
| Number of companies | ||||
| Flexibility | ||||
|---|---|---|---|---|
| Competitiveness | Adaptive | Parallel | Preemptive | Total |
| Medium | 12 | 21 | 3 | 36 |
| High | 2 | 15 | 8 | 25 |
| Total | 14 | 36 | 11 | 61 |