Question

Should the CBC hire stars for their movies? To answer this question, run a hypothesis test to see if there is a significant difference between the ratings of movies with stars versus movies without stars. Use the data for CBC movies only. Use 95% confidence. Answer the following: a. What are the null and alternative hypotheses (state in full sentences)? b. Run the test using Excel and include the output table. Use a t-test assuming equal variances. c. What is your recommendation to the executives? Justify your answer referring to the relevant figures.

Network	Rating	Stars
CBC	14	1
CBC	11.3	0
CBC	12.4	1
CBC	12.9	0
CBC	13.2	0
CBC	12.8	0
CBC	12.4	1
CBC	13.2	1
CBC	17.5	0
CBC	11.6	0
CBC	12.1	0
CBC	15.6	0
CBC	12.1	1
CBC	11.8	0
CBC	12.3	0
CBC	14.2	1
CBC	11.6	0
CBC	13.3	0
CBC	13.6	0
CBC	12.4	1
CBC	13.8	0
CBC	11.9	0
CBC	14.6	0
CBC	15.8	1
CBC	15.4	1
CBC	12.8	1
CBC	12.8	0
CBC	15.1	0
CBC	11.4	1
CBC	19.1	0

Answer 1

a) The hypothesis are:

H0 : i.e. there is no difference between the ratings of movies with stars versus movies without stars.

H1 : i.e.there is significant difference between the ratings of movies with stars versus movies without stars.

b) Answering the excel portion:

Data in excel is :

Go under Data->Data Analytics and select the following test:

Use following parameters:

You will get an output like this:

c)The t statistic calculated is 0.338 which is less than the critical value of t by a good margin ( two tailed critical value of t =2.048). So we would basically accept the null hypothesis and conclude that there is no difference between the ratings of movies with stars versus movies without stars. Recommendation to the executives is that they should focus on not hiring stars, and focus that part of the budget instead in the development of the film, creating meaningful cinema using more money in their pockets. Content superseeds stardom any day.

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