The Corner Market is using 2,500 transactions on item purchases for analysis. Based on initial results, the manager noticed eggs and potato chips were frequently in the same transactions. After calculating the confidence and the expected confidence on the data, 0.54 and 0.62 respectively, they want to run a lift ratio to ensure there is a positive association. Calculate the lift ratio and determine if the association is positive or negative.
A) 0.871, positive number, positive association
B) 0.871, under one, negative association
C) 1.148, over one, positive association
D) -1.148, negative number, negative association

Question

Quizplus · Accepted Answer

The lift ratio is calculated as the confidence divided by the expected confidence, which is 0.54 / 0.62 = 0.871. Since the lift ratio is under one, it indicates a negative association between the purchase of eggs and potato chips.

The Corner Market Is Using 2,500 Transactions on Item Purchases