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

Four different measures of GDP, Four different measures of GDP Using ci...

Four different measures of GDP Using circular flow model we see that there are 4 equivalent ways of measuring GDP:  Using the definition: market value of all finished goo

Annualized cost of the investment, After a competitive bidding process, Fir...

After a competitive bidding process, Firm G wins a contract to collect and dispose of Firm H's hazardous waste for $1,000 per year. Firm G's labor costs are $200 per year, and beca

Opportunity cost theory, discuss how opportunity cost principles influences...

discuss how opportunity cost principles influences a supplier''s decision to supply labor

Equilibrium quantity of widgets, Use the model in the tax incidence applica...

Use the model in the tax incidence application to determine the effect of a given change in the tax on widget, change in T, on the equilibrium quantity of widgets. How does your an

Balance of payments, Balance of Payments   All countries have economic t...

Balance of Payments   All countries have economic transactions with other countries. These consist of import and export of goods and services, official and private gifts and don

Determine nominal & real demand for money., Suppose that the quantity theor...

Suppose that the quantity theory of money holds & the velocity of money are constant at 5. Output is fixed at its full employment value of 10,000 & the price level is 2. a) Ver

Should the fiscal policy be active or passive?, In the view of above compli...

In the view of above complications, there is a long-standing debate on whether the fiscal policy should be active or passive in nature. Note that in the Keynesian context; even a p

Testing the hypothesis, An effort to reduce energy costs, a major universit...

An effort to reduce energy costs, a major university has installed more efficient lights as well as automatic sensors that turn the lights off when no movement is present in a room

Wages, what is a wage? and the difference between real and nominal wages gi...

what is a wage? and the difference between real and nominal wages giving examples?

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