COMM207 Business Statistics IIAssignment IFall 2016COMM 207 – Assignment IDue date: October 6, 2016 (at the beginning of class)1. The Black Fly Beverage Company has just installed a new bottling process that will fill500mL bottles of its popular margarita beverage. Both overfilling and underfillingbottles are undesirable: Underfilling leads to customer complaints and overfilling coststhe company a considerable amount of money. To verify that the filler is set up correctly,the company wants to see whether the mean bottle fill, ?, is close to the target fill of 500mL. To this end, a random sample of 36 filled bottles is selected from the output of a testfiller run. If the sample results cast a substantial amount of doubt on the hypothesis thatthe mean bottle fill is the desired 500 mL, the fillerâs initial setup will be readjusted.a. The bottling company wants to set up a hypothesis test so that the filler will bereadjusted if the null hypothesis is rejected. Set up the null and alternative hypothesesfor this hypothesis test.b. In the context of this situation, interpret making a Type I error; interpret making aType II error.2. National Motors has equipped the ZX900 with a new disc brake system. We define m tobe the mean stopping distance (from a speed of 55 km/h) of all ZX900s. National Motorswould like to claim that the ZX900 achieves a shorter mean stopping distance than the20 metres claimed by a competitor.a. Set up the null and alternative hypotheses needed to support National Motorsâ claim.b. A television network will allow National Motors to advertise its claim if the appropriatenull hypothesis can be rejected at ? = .05. If a random sample of 81 ZX900s have amean stopping distance of 19.27 metres, will National Motors be allowed to advertise theclaim? Assume that ? = 2 m and justify your answer using both a critical value and a pvalue.3. A group of researchers presented 205 research participants (all of whom were marketingresearchers) with a series of scenarios involving ethical issues such as confidentiality,conflict of interest, and social acceptability. One of the scenarios presented to theparticipants was as follows:A marketing testing firm to which X Company gives most of its business recently wentpublic. The marketing Â¬research director of X Company had been looking for a goodinvestment and proceeded to buy some $20,000 of their stock. The firm continues as XCompanyâs leading supplier for testing. Of the 205 marketing researchers whoparticipated in the ethics survey, 111 said that they disapproved of the actions taken in thescenario.a. Let p be the proportion of all marketing researchers who disapprove of the actionstaken in the conflict of interest scenario. Set up the null and alternative hypothesesCOMM207 Business Statistics IIAssignment IFall 2016needed to attempt to provide evidence supporting the claim that a majority of allmarketing researchers disapprove of the actions taken.b. Assuming that the sample of 205 marketing researchers has been randomly selected,use critical values and the previously given sample information to test the hypothesesyou set up in part (a) at the .10, .05, .01, and .001 levels of significance. How muchevidence is there that a majority of all marketing researchers disapprove of the actionstaken?c. Suppose a random sample of 1,000 marketing researchers reveals that 540 of theresearchers disapprove of the actions taken in the conflict of interest scenario. Usecritical values to determine how much evidence there is that a majority of allmarketing researchers disapprove of the actions taken.d. Note that in parts (b) and (c) the sample proportion is essentially the same. Explainwhy the results of the hypothesis tests in parts (b) and (c) differ.4. In the Journal of Marketing, Bayus studied differences between âearly replacementbuyersâ and âlate replacement buyers.â Suppose that a random sample of 800 earlyreplacement buyers yields a mean number of dealers visited of, and that arandom sample of 500 late replacement buyers yields a mean number of dealers visited of. Assuming that the standard deviation for early replacement buyers is .66, andthe standard deviation for late replacement buyers is .71, and assuming that the samplesare independent:a. Set up the null and alternative hypotheses needed to attempt to show that the meannumber of dealers visited by late replacement buyers exceeds the mean number of dealersvisited by early replacement buyers by more than 1.b. Test the hypotheses you set up in part (a) by using critical values and by setting ? equalto .10, .05, .01, and .001. How much evidence is there that H0 should be rejected?c. Find the pvalue for testing the hypotheses you set up in part (a). Use the pvalue to testthese hypotheses with a equal to .10, .05, .01, and .001. How much evidence is there thatH0 should be rejected? Explain your conclusion in practical terms.d. Do you think that the results of the hypothesis tests in parts (b) and (c) have practicalsignificance? Explain and justify your answer.5. In the book Essentials of Marketing Research, William R. Dillon, Thomas J. Madden,and Neil H. Firtle discuss evaluating the effectiveness of a test coupon. Samples of 500test coupons and 500 control coupons were randomly delivered to shoppers. The resultsindicated that 35 of the 500 control coupons were redeemed, while 50 of the 500 testcoupons were redeemed.COMM207 Business Statistics IIAssignment IFall 2016a. In order to consider the test coupon for use, the marketing research organization requiredthat the proportion of all shoppers who would redeem the test coupon be statisticallyshown to be greater than the proportion of all shoppers who would redeem the controlcoupon. Assuming that the two samples of shoppers are independent, carry out ahypothesis test at the .01 level of significance that will show whether this requirement ismet by the test coupon. Explain your conclusion.b. Carry out the test of part (a) at the .10 level of significance. What do you conclude? Isyour result statistically significant?6. Let p1 represent the population proportion of Canadian women who are in favour of anew modest tax on "junk food". Let p2 represent the population proportion of Canadianmen who are in favour of a new modest tax on "junk food". Out of the 265 womensurveyed, 106 of them are in favour of a "junk food" tax. Out of the 285 men surveyed,only 57 of them are in favour a "junk food" tax. At= 0.01, can we conclude that theproportion of women who favour "junk food" tax is more than 5% higher than proportionof men who favour the new tax?7. A marketing research company surveyed grocery shoppers in the east and west coasts tosee the percentage of the customers who prefer chicken to other meat. The data are givenbelow.Is the proportion of customers who prefer chicken higher at the West Coast? Test at 0.05significant level.8. Consider a chemical company that wants to determine whether a new catalyst, CatalystXA100, changes the mean hourly yield of its chemical process from the historicalprocess mean of 750 kilograms per hour. When five trial runs are made using the newcatalyst, the following yields (in kilograms per hour) are recorded: 801, 814, 784, 836,and 820.a. Letting ? be the mean of all possible yields using the new catalyst, set up the null andalternative hypotheses needed if we want to attempt to provide evidence that ? differsfrom 750 kilograms.b. The mean and the standard deviation of the sample of five catalyst yields areands = 19.647. Using a critical value and assuming approximate normality, test thehypotheses you set up in part (a) by setting ? equal to .01. The pvalue for the hypothesistest is given in the Excel output on the page margin. Interpret this pvalue. Present astandardized effect size estimate to accompany the hypothesis test.COMM207 Business Statistics IIAssignment IFall 20169. Given sample data: .612, .619, .628, .631, .640, .643, .649, .655, .663, and .679, test H0: Âµ? .625 versus HA: Âµ > .625 at alpha =.10. Assume the population is normally distributed.10. Test H0: Âµ1 ? Âµ2, HA: Âµ1 > Âµ2 at ? = .10, where1 = 77.4,2 = 72.2, s1 = 3.3, s2 = 2.1,n1 = 6, n2 = 6. Assume equal population variances, normally distributed populations, andindependent random samples.11. Suppose a sample of 11 paired differences that has been randomly selected from anormally distributed population of paired differences yields a sample mean ofand a sample standard deviation of sd = 5.a. Test the null hypothesis H0: ?d ? 100 versus H?: ?d > 100 by setting alpha equal to .05and .01. How much evidence is there that ?d = ?1 ? ?2 exceeds 100?b. Test the null hypothesis H0: ?d ? 110 versus H?: ?d < 110 by setting alpha equal to .05and .01. How much evidence is there that ?d = ?1 ? ?2 is less than 110?12. A marketing manager wants to compare the mean prices charged for two brands of CDplayers. The manager conducts a random survey of retail outlets and obtains independentrandom samples of prices with the following results: (assume normality)Use the sample information to test H0: ?12 = ?22 versus H?: ?12 ? ?22 with ? = .05. Basedon this test, does it make sense to use the equal variances procedure? Explain.13. Test H0: ?12 ??22, HA: ?12 > ?22 at alpha = .05 where n1 = 16, n2 = 19, s12 = .03, s22 =.02.
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