Question

As a member of the international strategic management team in your company, you are assigned the task of exploring potential foreign market entry. As part of your initial investigation, you want to know if there is a difference between developed markets and emerging markets with respect to the time required to start a business. You select 15 developed countries and 15 emerging countries. The time required to start a business, defined as the number of days needed to complete the procedures to legally operate a business in these countries

Country	Level of Development	Time Required to Start a Business (days)
Argentina	Emerging	26
Australia	Developed	2
Austria	Developed	25
Brazil	Emerging	119
Canada	Developed	5
Chile	Emerging	8
China	Emerging	33
Denmark	Developed	6
Egypt	Emerging	7
Finland	Developed	14
France	Developed	7
Germany	Developed	15
Hungary	Emerging	5
India	Emerging	27
Italy	Developed	6
Japan	Developed	23
Korea, Rep.	Emerging	7
Malaysia	Emerging	6
Mexico	Emerging	9
Poland	Emerging	32
Romania	Emerging	10
Russian Federation	Emerging	18
Singapore	Developed	3
South Africa	Emerging	19
Spain	Developed	28
Sweden	Developed	16
Switzerland	Developed	18
Thailand	Emerging	29
United Kingdom	Developed	13
United States	Developed	6

1. Assuming that the population variances for developed countries and emerging countries are unknown and equal, is there evidence of a difference in the mean time required to start a business between developed countries and emerging countries? (Use alpha = 5%).
2. Determine the p-value in (a) and interpret its meaning
3. In addition to equal variances, what other assumption is necessary in (A)

Kindly provide step by step solution for excel with the conclusion.

Answer 1

Enter the data into Excel.

Now, do the following steps:

Select the data.

The output is:

The hypothesis being tested is:

H0: µ1 = µ2

H1: µ1 ≠ µ2

The p-value is 0.152525.

Since the p-value (0.152525) is greater than the significance level (0.05), we fail to reject the null hypothesis.

Therefore, we cannot conclude that there is a difference in the mean time required to start a business between developed countries and emerging countries.

The assumptions are:

Independence and normality.

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