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Probability Rules

Contingency Tables

Learning Objectives

Construct and understand contingency tables.

A Contingency Table:

  • Describes the relationship between categories.
  • Also know as a ‘Crosstabs‘ in marketing.
  • “The categories of one variable determine the rows of the table.
  • The categories of the other variable determine the columns.”[1]
  • “Heavily used in survey research, business intelligence, engineering, and scientific research.”[2]

Constructing a Continency Table:

  • The ‘outsides’ (totals) of the table, are the ‘singular’ (or total) probabilities
  • Inside the table are the intersections of categories (or ‘ANDs’)
  • The table below is for two events, A and B, that can each either happen or not happen
  • Because there are only 2 options for both A and B, the above table is also called a 2×2 table
  • Some events can have more than 2 possible options (see examples later in this section)
A not A Totals
B P(A and B) P(Ā and B) P(B)
not B P(A and B̅) P(Ā and B̅) P(B̅)
Totals P(A) P(Ā) 1

Where:

  • P(Ā) = P(not A) = 1 − P(A)
  • P(B̅) = P(not B) = 1 − P(B)


  1. https://libguides.library.kent.edu/SPSS/Crosstabs#:~:text=To%20describe%20the%20relationship%20between,other%20variable%20determine%20the%20columns.
  2. https://en.wikipedia.org/wiki/Contingency_table

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An Introduction to Business Statistics for Analytics (1st Edition) Copyright © 2024 by Amy Goldlist; Charles Chan; Leslie Major; Michael Johnson is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License, except where otherwise noted.

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