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

Substitute a less expensive good, If the price of a good rises, what are pe...

If the price of a good rises, what are people likely to do? a Substitute a less expensive good b Buy more of the good c Buy more of all goods because of added buying power d All of

Relationship with 8 variants of national product aggregates, RELATIONSHIP W...

RELATIONSHIP WITH 8 VARIANTS OF NATIONAL PRODUCT AGGREGATES  We have shown the distinction between national product at market prices and national product at factor cost, based

Illustrate an example of consumer price index, Illustrate an example of Con...

Illustrate an example of Consumer Price Index For instance, if we spend twice as much on apples as on pears, apples would have twice the weight in basket. The precise details o

Give an example also diminishing returns to an input, Explain the productio...

Explain the production function and discuss why it is important? Explain diminishing returns to an input and give an example? Discuss why a firm's cost curve might be different in

Manager of a firm, You are the manager of a firm that receives revenues of ...

You are the manager of a firm that receives revenues of $40,000 per year from product X and $90,000 per year from product Y. The own price elasticity of demand for product X is -1.

Compare and contrast federal government expenditures, Compare and contrast ...

Compare and contrast federal government expenditures, state and local government expenditures, and financing government expenditures. Suggest a total of three actions that should b

Estimated profit of typical start-up businesses, Typical start-up businesse...

Typical start-up businesses' estimated profit are forecasted as following: State Bad Good Probability 81% 21%

explain how to solve the evacuation-route problem, You are the mayor of a ...

You are the mayor of a beautiful city by the ocean, and your city is connected to the mainland by a set of k bridges. Your city manager tells you that it is necessary to come up wi

Microsoft case study, 2.2 "Our business model works even if all internet so...

2.2 "Our business model works even if all internet software is free ....... We are still selling operating systems. What does Netscape''s business model look like? Not very good."

Advantage and disadvantage of reducing dependence, What are the pros and co...

What are the pros and cons of reducing dependence on outsourcing in order to fulfill social obligations toward stakeholders?

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