In: Statistics and Probability
You and a group of friends wish to start a company. You have an
idea, and...
- You and a group of friends wish to start a company. You have an
idea, and you are comparing startup incubators to apply to. (Start
up incubators hold classes and help startups to contact venture
capitalists and network with one another) Assume funding is
normally distributed.
Incubator A has a 80% success ratio getting companies to survive at
least 4 years from inception. The average venture funding of the 28
companies reaching that 4 year mark, is 1.3 million dollars with a
standard deviation of 0.6 million
Incubator B has a 60% success ratio
getting companies to survive at least 4 years from inception. The
average venture funding of the 21 companies reaching that 4 year
mark, is 1.9 million dollars with a standard deviation of 0.55
million
- Are the success ratios significantly different?(note the count
is given but not N, how do you find N?)
- Is the average funding in incubator B significantly different
from the average funding in a. (use a=0.01). Assume a normal
distribution