What does Cross Tabulation analyze?

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Cross Tabulation, often referred to as a contingency table, is a statistical tool used to analyze the relationship between two qualitative variables. This analysis helps in understanding how the categories of one variable interact with the categories of another variable. For instance, in a survey context, cross tabulation can show how responses to a question about product preference might vary across different age groups or gender categories.

By organizing data in a matrix format, cross tabulation allows for an easy comparison of the frequencies or percentages across the different classification levels of the two variables. This can reveal patterns and trends that might not be identifiable when examining each variable in isolation.

The other choices refer to different forms of analysis that are not specifically what cross tabulation is designed for. The first choice talks about a quantitative relationship between sales and profits, which would typically require regression analysis or correlation techniques. The third choice focuses on a temporal comparison of data, which is more aligned with trend analysis. The last option discusses direct correlation between asset values, which again points towards correlated analysis or financial metrics rather than the qualitative comparison that cross tabulation offers.

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