Statistics (3 Problems) Due 9/2 Midnight EST

Week 2 – Assignment

Problem Set: Week Two

  Complete the
problems below and submit your work in one Word document.  Be sure to show all of your work and clearly
label all calculations.  Calculations
completed in Excel must be copied and pasted into a single Word document.  No Excel documents will be graded.

  TIP: For help
copying and pasting information from Excel to Word go to
http://office.microsoft.com/en-us/word-help/copy-excel-data-or-charts-to-word-HP010198874.aspx
or watch the “Excel Tips – Tip#48: Copy from Excel to Word” found in Week One
Recommended Resources.

  Problem One

  Suppose that an
automotive parts and accessories chain is experimenting with a new sales
promotion. Two similar stores are selected for the experiment. For Store 1,
nothing changes. This store constitutes the control group. For Store 2, the
treatment group, the promotion is implemented.

  Sales in hundreds
of dollars over a five-day period are as follows:

  Control: 6, 6,
7, 10, 12, 9, 6, 5, 5, 7

  Treatment: 2,
5, 2, 4, 7, 1, 2, 3, 4, 5

 

  The expectation
that sales will be higher in the treatment group makes this a one-tailed test;
the alternate hypothesis is m1 < m2. Use Excel to determine whether
differences between the two groups are statistically significant. 

  Show all of your
work and clearly label each of your calculations.  Share your calculations and your
interpretations of your findings in your Word document.

  Problem Two.

  Suppose that a
home builder is approached by a customer who wants to move in as soon as
possible. The customer chooses three home designs that she likes and asks the
home builder which one could be completed the fastest.  To compare the three designs on speed of
completion, the builder randomly selects 10 homes that he built in the past
based on each of the three designs.

  Use the Excel
Analysis ToolPak to run an ANOVA test in order to determine which design would
be best for the customer.  Show all of
your work and clearly label each of your calculations.  Make sure to also clearly describe the
respective data and your conclusions.

  The data for the
number of days to build each home are as follows:

  Design A: 15,
17, 19, 21, 23, 25, 27, 29, 31, 33

  Design B: 29,
34, 39, 44, 49, 54, 59, 64, 69, 74

  Design C: 22,
24, 25, 27, 28, 28, 29, 31, 33, 34

  For more
information on conducting an ANOVA test in Excel reference the Week Two
Recommended Resources.

  Problem Three

  An insurance
company is reviewing its current policy rates. When originally setting the
rates they believed that the average claim amount was $1,800. Now there are
concerns that if the true mean is actually higher than this they could
potentially lose a lot of money. They randomly select 40 claims, and calculate
a sample mean of $1,950. Assuming that the standard deviation of claims is
$500, and set significance level = :05, test to see if the insurance company
should be concerned.

  Show all of your
work and clearly label each of your calculations.  Share your calculations from Excel and your
interpretations of your findings in your Word document. 

  Copy and paste
your calculations for the three problems from Excel to Word and submit one Word
document with your clearly labeled calculations and interpretations.

 

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