Question

Questions 1 through 12 are based on the following You work for a men’s designer apparel company based in the US that is planning to expand to the Netherlands. Your target market is young professional men in the age range 24-35. You conducted a survey of 239 Dutch people that satisfies this criterion. From this survey, you have the following information: average income = $43,348.44, standard deviation = $21,989.02, Standard Error = $1422.35

Question 1

The above income information obtained from the survey pertains to

a.The population of Dutch professional men in the age range 24-35

b. The sample of 239 Dutch professional men in the age range 24-35

c. Sampling distributions of the average income (n=239) of Dutch professional men in the age range 24-35

Question 2

The mean of the sampling distribution (n=239) of the average income of Dutch professional men in the age range 24-35 is

a. $43,348.44

b.$45,905.00

c.We need a confidence interval estimate

Question 3 The standard deviation of the sampling distribution of the average income (n=239) of Dutch professional men in the age range 24-35 is

a. $21,989.02

b.$1422.35

c.We need to calculate the z-value

Question 4

You would like to know if the average income of your target market in the Netherlands is different from the US market. In the US, the average income is $45,000. In the past, your company did not expand to another country if the average income of the target market was different from the US. What are the appropriate null and alternative hypotheses to pursue your research question? Group of answer choices

a.Null Hypothesis: The average income of Dutch professional men in the survey is $45,000; Alternative Hypothesis: The average income of Dutch professional men in the survey is different from $45,000

b.Null Hypothesis: The average income of Dutch professional men aged 24 - 35 is $45,000; Alternative Hypothesis: The average income of Dutch professional men aged 24 - 35 is different from $45,000

c.None of the above

Question 5

From the above sample, the 90% confidence interval estimate of the average income of Dutch target market is [$40,999.74, $45,697.15]. Based on this information,

a.Reject the Null Hypothesis at 10% level of significance

b.Fail to Reject the Null Hypothesis at 10% level of significance

c.We need more information

Question 6

What is the Z-value (Ztest) of the hypothesis test? ______ (round up to 2 decimal points).

Question 7

At 10% level of significance, the rejection region to test your hypothesis is:  

a.Z < -1.16 or Z >1.16

b.Z < - 1.96 or Z > 1.96

c.Z < -1.64 or Z > 1.64

Question 8

Based on the test-statistics and your chosen level of significance, what is your statistical inference?  

a.Reject the Null Hypothesis

b.Fail to Reject the Null Hypothesis

Question 9

The p-value of the above hypothesis test is 0.247. What is your statistical decision (previously, you chose a significance level of 10%)?

a. Reject the Null Hypothesis

b. Fail to Reject the Null Hypothesis

Question 10

Based on the statistical inference above, what is your business decision? In the past, your company did not expand to another country if the average income of the target market was different from the US. Group of answer choices

a.Expand to Netherlands

b.Do not expand to Netherlands

c.I am undecided

Question 11

If the actual average income of the Dutch target market is $43,000, then your statistical decision and subsequent business decision is an example of

Group of answer choices

a.Type I Error

b.Type II Error

c. No Error has been committed

Question 12

How would your statistical and subsequent business decision change if you use a 5% level of significance (instead of the 10% level of significance used above) Group of answer

a. choices Remains the same

b. Gets reversed

Answer 1

1. The above income information obtained from the survey pertains to -

ans-> b. The sample of 239 Dutch professional men in the age range 24-35

2. The mean of the sampling distribution (n=239) of the average income of Dutch professional men in the age range 24-35 is -

ans-> a. $43,348.44

3. The standard deviation of the sampling distribution of the average income (n=239) of Dutch professional men in the age range 24-35 is -

ans-> a. $21,989.02

4. The appropriate null and alternative hypotheses to pursue your research question are -

ans-> a.Null Hypothesis: The average income of Dutch professional men in the survey is $45,000; Alternative Hypothesis: The average income of Dutch professional men in the survey is different from $45,000

5. Based on the 90% confidence interval estimate of the average income of Dutch target market i.e. [$40,999.74, $45,697.15],

ans-> b.Fail to Reject the Null Hypothesis at 10% level of significance, since the confidence interval includes 45000

6.  The Z-value (Ztest) of the hypothesis test = -1.16

7. At 10% level of significance, the rejection region to test your hypothesis is:  

ans-> c.Z < -1.64 or Z > 1.64

8. ans-> b. Fail to Reject the Null Hypothesis

9. ans-> b. Fail to Reject the Null Hypothesis

10. ans-> a.Expand to Netherlands

11. b) b.Type II Error since we fail to reject H₀ when H₀ : mean = 45000 is actually not true

12. a. choices Remains the same, since P-value > 0.05 too.