Conclude a hypothesis test, Macroeconomics

Assignment Help:

Will improving customer service result in higher stock prices for the companies providing the better service? When a companys satisfaction score has improved over the prior years results and is above the national average (currently 75.7), studies show its shares have a good chance of outperforming the broad stock market in the long run (Business- Week, March 2, 2009). The following satisfaction scores of three companies for the 4th quarters of 2007 and 2008 were obtained from the American Customer Satisfaction Index. Assume that the scores are based on a poll of 60 customers from each company. Because the polling has been done for several years, the standard deviation can be assumed to equal 6 points in each case.

Company 2007 Score 2008 Score
Rite Aid 73 76
Expedia 75 77
J.C. Penney 77 78

a. For Rite Aid, is the increase in the satisfaction score from 2007 to 2008 statistically significant?
Use ? ? = :05. What can you conclude?

b. Can you conclude that the 2008 score for Rite Aid is above the national average of 75.7? Use ? ? = :05.

c. For Expedia, is the increase from 2007 to 2008 statistically significant? Use ? = :05.

d. When conducting a hypothesis test with the values given for the standard deviation, sample size, and ?, how large must the increase from 2007 to 2008 be for it to be statistically significant?

e. Use the result of part (d) to state whether the increase for J.C. Penney from 2007 to 2008 is statistically significant.


Related Discussions:- Conclude a hypothesis test

interpret and explain the nmr spectrum, Treatment of Na2PdCI4 with 3-chlor...

Treatment of Na2PdCI4 with 3-chloro-2-methyl-1-propene under an atmosphere of CO yields the dimer [(11 3 - C 4 H 7 )PdClb (A). The 1H NMR spectrum of A at 298 K shows 3 signals: a

Real wage, what wil hapen to the real wage if the nominal wages and prices ...

what wil hapen to the real wage if the nominal wages and prices rise at the same rate per year?

Uniform series of payments, Your project has an estimated cost for land rec...

Your project has an estimated cost for land reclamation to be realized at the end of 20 years from today for $70,000,000. If current bond long-term interest rates are 7% compounded

Determine total cost of product, Pucker Lemonade, Inc., is a small company ...

Pucker Lemonade, Inc., is a small company that produces bottled lemonade. Pucker's fixed cost includes the monthly rental cost of the lemon-smashing machines, the bottling machines

Describe the short run effect of the supply shock, Question : The long-...

Question : The long-run position of an economy is described by the quantity theory of money: M/P = L (Y, r) Where M: nominal money stock; P: price level; Y: real income a

Increasing opportunity cost, Using the PPC show what is meant by the law of...

Using the PPC show what is meant by the law of increasing opportunity cost and explain (state) why that law exists. Why is that law important when deciding whether or not to watch

GDP, according to this example,how much value do each book contribute to th...

according to this example,how much value do each book contribute to the GDP? a) a forester chop down 100 trees and sell them @$100 to the paper and pulp factotry

Describe nominal and real interest rates, Q. Describe Nominal and real inte...

Q. Describe Nominal and real interest rates? To distinguish real interest rate from the ‘normal' interest rate, latter is termed as the nominal interest rate. Nominal interest

Welfare economic, Evaluate the Bergson social welfare functions

Evaluate the Bergson social welfare functions

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd