Explain the hypothesis tested by this statistic

Assignment Help Basic Statistics

Reference no: EM131014353

A study designed to determine how willing consumers are to pay a premium for non-biotech breakfast cereals (cereals that do not include gene-altered ingredients) included both U.S. and U.K. subjects.6 The response variable was a measure of how much extra they would be willing to pay, and the explanatory variables included items related to perceived risks and bene?ts, demographic variables, and country. Country was coded as 0 for the U.K. subjects and 1 for the U.S. subjects. The parameter estimate for country was reported as -0.2304 with t = -4.196. The total number of
subjects was 1810.

(a) Interpret the regression coef?cient. Are subjects in the U.S. more willing to pay extra for non-biotech breakfast cereals than U.K. subjects, or are they less willing?

(b) Use the t statistic to ?nd a bound on the P-value. Explain the hypothesis tested by this statistic and summarize the result of the signi?cance test.

(c) The U.S. data were collected using questionnaires that were sent to a nationally representative sample of 5200 households enrolled in the National Dairy Panel (NDP) Group. The response rate was 58%. The same questionnaire was used for an online survey of the 9000 U.K. customers enrolled in another NDP Group. The response rate was 28.5%. Several of the items used in the analysis included "Don't know" as a possible response. Respondents choosing this option were excluded from the analysis. Discuss the implications of these considerations on the results.

Reference no: EM131014353

Questions Cloud

Firm have to issue to receive the needed funds : Sincery Station Corp needs to raise $ 527000 to improve its manufacturing plant. It has decided to issue 1000 par value bond with an annual coupon rate of 11.1 percent with interest paid semi-annually and a 15 yrs maturity. Investors require a rate o..

What critiques do you have about the article : What critiques do you have about the article? Were there any problems with the design of the studies? What do you think they could have done better? Did the researchers address them

What angle should be used to have the clown land directly : Can the performer be fired to the cushion without hitting the ceding? Will the clown land on the cushion? If not, will he land short or long of the mark? What angle should be used to have the clown land directly on the cushion?

Statement of financial position : There are many users of accounting information, such as business owners, stockholders, customers, lenders, and suppliers. Among the financial statements is the statement of financial position. Answer the following questions about the statement of fin..

Explain the hypothesis tested by this statistic : Interpret the regression coef?cient. Are subjects in the U.S. more willing to pay extra for non-biotech breakfast cereals than U.K. subjects, or are they less willing?

What are the floating cost for issuing the preferred shares : The preferred stock of Gator industries sells for 34.51 and pays 2.72 per year in dividends what is the cost of preferred stock financing? If gator were to issue 509000 more preferred shares just like the ones it currently has outstanding it could se..

Portfolio return-what is your portfolio return : Portfolio Return At the beginning of the month, you owned $5,500 of General Dynamics, $7,500 of Starbucks, and $8,000 of Nike. The monthly returns for General Dynamics, Starbucks, and Nike were 7.44 percent, 21.36 percent, and 20.54 percent. What is ..

What would be the effect of adding damping : What would be the effect of adding damping (+cy', where c > 0) to the system? How could a bridge design engineer incorporate more damping into the bridge?

What type of research method was used in article : What type of research method was used (e.g., description of subjects, what materials were used, and procedures). Please do this for two studies (you do not need to do it for every study if there are 3 or more, but try to pick studies you think wer..

User Account

All Pages