ASSIGNMENT 3

1. A publishing house conducted a survey to assess the reading habits of teenagers. The company publishes four types of books specifically tailored to suit the interests of teenagers. Management hypothesizes that there are no differences in the preferences for the four types of books. A sample of 1600 teenagers indicated the following preferences for the four book types.

*Publication Frequency of Preference*

Non-Fiction 350

Mystery 500

Humor 450

Short Stories 300

TOTAL 1600

Management needs your expertise to determine whether there are differences in preferences for the four types of books.

a. State the null and alternate hypotheses in plain English sentences (not equations).

b. What is the calculated chi-squared value? Show your calculations.

c. The tabled chi-squared value for 5% significance and three degrees of freedom is 7.81. Can you reject the null hypothesis? Why or why not?

2. A marketing manager for a chain of brake shops was considering two different services for an in-store promotion: a wheel alignment or an oil change. She wanted to know if there was different demand for these services, before deciding which promotion to run nationally. She test marketed the wheel alignment promotion in ten shops in Cleveland, and the oil change promotion in ten shops in Detroit. She recorded the following sales of the two promotions:

SHOP NO. WHEEL ALIGNMENT IN CLEVELAND OIL CHANGE IN DETROIT

1 318 314

2 322 315

3 333 350

4 315 305

5 385 299

6 310 309

7 312 312

8 308 331

9 312 335

10 340 299

(questions on the next page)

a. State the null and alternate hypotheses in plain English sentences (not equations).

b. Using Excel or any statistical package you are familiar with, do a direct comparison of two means to determine if there is a significant difference between the sales of the two services. Print out the computer results.

c. Can you reject the null hypothesis? Why or why not?

3. Redo the analysis for Question 2, but this time assume that she used 10 shops in Cleveland (one city only), and she tested both promotions in each shop. (You will need to do a different statistical analysis.)

a. State the null and alternate hypotheses in plain English sentences (not equations).

b. Using Excel or any statistical package you are familiar with, do the appropriate analysis to determine if there is a significant difference between the sales of the two services. Print out the computer results.

c. Can you reject the null hypothesis? Why or why not?

Subject | Mathematics |

Due By (Pacific Time) | 04/09/2014 12:00 am |

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