Question

In: Statistics and Probability

Is there a difference in the variance of the satisfaction rating of traditional cellphone provider who...

Is there a difference in the variance of the satisfaction rating of traditional cellphone provider who bill for service at the end of a month (often under a contract) and prepaid cellphone service providers who bill in advance without a contract? The file CellphoneProviders (see folder) contains the satisfaction rating for 10 traditional cellphone providers and 13 prepaid cellphone service. A. At the 0.05 level of significance, is there evidence of a difference in the variability of the satisfaction rating between the types of cellphone providers? B. Determine the p-value in (A) and interpret its meaning.

CellPhone Provider Type Rating
Consumer Cellular Traditional 89
Ting Traditional 88
Grat Cell/Jitterbug Traditional 79
Credo Mobile Traditional 78
Virgin Mobile Traditional 76
U. S. Cellular Traditional 73
T-Mobile Traditional 73
Verizon Wireless Traditional 70
AT&T Traditional 68
Sprint Traditional 67
Republic Wireless PrePaid 87
Cricket PrePaid 85
Page Plus Cellular PrePaid 84
Straight Talk PrePaid 80
TracFone PrePaid 79
MetroPCS PrePaid 78
Virgin Mobile PrePaid 76
Net10 PrePaid 76
Boost Mobile PrePaid 75
T-Mobile PrePaid 74
Verizon Wireless PrePaid 70
AT&T PrePaid 70
Sprint PrePaid 66

PLEASE SOLVE IT ON EXCEL. STEP BY STEP THANK YOU

Solutions

Expert Solution

Answer(A):

To test the difference in the variability of the satisfaction rating between the types of cellphone providers, we need to run the F test for two sample variances. In Excel, we can do it as below:

1. Copy the data in Excel.

2. Go to the data

3. open the data analysis toolpack

4. select the data for both variables(shown in screen shot)

The output of F test is as below:

F-Test Two-Sample for Variances
Variable 1 Variable 2
Mean 76.1 76.9231
Variance 58.3222 38.4103
Observations 10 13
df 9 12
F 1.5184
P(F<=f) one-tail 0.2457
F Critical one-tail 2.7964

Answer(B):

the p-value of the test is 0.2457 which is greater than 0.05 and it suggest that the F test is not significant and we can conclude that there is no difference in the variability of the satisfaction rating between the types of cellphone providers.


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