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

What do you mean by the long run outcome, Imagine a firm with the same cost...

Imagine a firm with the same cost structure but in each of the four market structures: Competitive, Monopolistically Competitive, Oligopoly, and a Monopoly. Using the concepts of c

State the price level and time, State the Price level and time We are r...

State the Price level and time We are rarely interested in the value of price level at a specific point in time. What we are interested in is percentage change in the price lev

Velocity of money is constant, Suppose that this year's the money supply is...

Suppose that this year's the money supply is $500 billion, nominal GDP is $10 trillion, and real GDP is $5trillion. a. What is the price level? b. What is the velocity of money

Aplia Chapter Questions, Need answers for the questions (Chapters 10, 11 & ...

Need answers for the questions (Chapters 10, 11 & 12) Please see attached questions. Thanks!

Investment strategy management, I am studying Investment Management. My ass...

I am studying Investment Management. My assignment is to develop my own Investment Strategy in the light of existing Macroeconomic environment situation for a country such as Pakis

What are the contents in the market strikes back, What are the contents in ...

What are the contents in the market strikes back? a. Price controls • Price ceiling • Price floor b. Quantity controls quota c. Excise tax d. Inefficiency

What degree of elasticity does chipotle burritos exhibit, Economists estima...

Economists estimate the short run elasticity of demand for a Chipotle burrito is -2.25. i)    What degree of elasticity does Chipotle burritos exhibit? ii)    A 1% change in

Full employment and the natural rate, Is the natural rate of unemployment f...

Is the natural rate of unemployment fixed? Why or why not? How are full employment and the natural rate of unemployment related? Is the actual rate of unemployment currently greate

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