Question

The Question I am needing assistance with is in BOLD BELOW. I will include the other aspects of this assignment for reference, as well as the table used/needed for these calculations.

Option #1: Critical Thinking: Quality at A1 Hotels

A1 Hotels operates luxury hotels throughout the world. Recently, motivated by some incidents that appeared in the news, they have been concerned about the quality of service. The company has been giving the following survey to its clients after their stay:

Any customer who answered “Poor” to at least one of the three questions above is considered to be “dissatisfied.” Traditionally, 40% of customers have been dissatisfied.

A1 Hotels would like to see if the recent level of customer satisfaction has changed. Therefore, 200 survey responses were recently chosen at random for analysis. The complete data set is in the file named Hotels.

Managerial Report

Prepare a report (see below) for A1 Hotels that summarizes your assessment of customer satisfaction. Be sure to include the following seven items in your report

Develop the 92% confidence interval for the proportion of all recent clients who answered “Poor” to service quality. Interpret what the confidence interval tells you about the proportion of all recent clients who answered “Poor” to service quality. What is the corresponding margin of error? How can the margin of error be decreased?

2. #7. Conduct a hypothesis test, using both the p-Value Approach and the Critical Value Approach, to determine if the proportion of all recent clients is more dissatisfied than the traditional level of dissatisfaction. Use α = 0.08 level of significance. Do not forget to include the correctly worded hypothesis and show all of the steps required to conduct the hypothesis test.
   1. What would be possible effects of a lower and then of a higher level of significance?
   2. What other hypothesis tests would you use to better understand hotel customer satisfaction?
   3. What advice would you give A1 Hotels based upon your analysis of the data?
   4. What is the magnitude of the improvement (if any)?
   5. How can this study be improved?

Room Quality

Food Quality

Service Quality

42

47

54

143

Answer 1

a)

The level of significance defines the TYPE 1 error in hypothesis, a TYPE I error is the rejection of a true null hypothesis (also known as a "false positive" finding or conclusion). Hence increasing the level of significance would allow more false positives in the population hence rendering the study useless. However reducing the level of significance would reduce the number of false positives but since we also need to minimise the TYPE 2 error, lowering the level of significance to extreme levels would cause rise in TYPE 2 error hence leading to fictitious results.

b)

Another test that could be used in such a situation is one way ANOVA where the three questions can be treated as different treatments and hence compared. ANOVA test would allow to find out if the proportion of poor feedbacks are same across all the sectors or not i.e. Room Quality, Food Service, Service Quality.

c)

Sufficient information not available to answer

d)

Sufficient information not available to answer

e)

This study could be drastically improved by including other feedbacks from the customer into the test i.e. testing for the proportion of poor feedbacks would provide much less information than the case where we study all the feedbacks. This would allow us to know if the feedbacks are all on the lower side of the scale or they are extremely distributed with most of the feedbacks on the extreme sides of the scale etc.Further we could also check if there is a pattern in the feedbacks such as on the basis of the type of accomodation / duration of stay / category of customer etc. Also one could analyse if there is a tendency to receive poor feedback in all the questions if one of them is answered as poor.