Hypothesis test It is often useful for companies to know who their customers are and how...

Hypothesis test

It is often useful for companies to know who their customers are and how they became customers. In a study of credit card use, random samples were drawn of cardholders who applied for the credit card and credit card holders who were contacted by telemarketers or by mail. The total purchases made by each last month were recorded. Can we conclude from these data that differences exist on average between the two types of customers? Test the claim at alpha= 0.05 The following table contains means and standard deviations for both samples. Assume unequal population variances.

employe sample mean standard deviation sample size

customers who

applied $130.93 $31.99 35

Customers

contacted $126.14 $26.00 30

HINT: use test statistic

Expert Solution

From the above test, it is clear that no differences exist on average between the two types of customers.

Dear student,
I am waiting for your feedback. I have given my 100% to solve your queries. If you satisfied with my answer then please please like this.
Thank You

orchestra answered 1 year ago

What is a hypothesis and why might a hypothesis test be useful in deciding whether to...

What is a hypothesis and why might a hypothesis test be useful in deciding whether to launch a new product or not? Give a business example to support the reasoning.

It is often argued that the best people to detect crime are those who know how...

It is often argued that the best people to detect crime are those who know how to commit the crime. With this in mind, how would you commit the perfect fraud? You can use your organization or a “fictitious” organization. What weaknesses would you look to take advantage of? How would you make sure that your fraud was not detected? If you had to identify one item that would be the greatest deterrent to you – what would that be?...

1. What are the steps to creating a hypothesis test? 2. How do you know if...

1. What are the steps to creating a hypothesis test? 2. How do you know if the alternative hypothesis is one-tailed or two-tailed? 3. What is a p-value, and where do you find it? 4. Describe statistical significance. 5. What is a Type I error? Type II error?

14. In formulating hypotheses for a statistical test of significance, the null hypothesis is often ...

14. In formulating hypotheses for a statistical test of significance, the null hypothesis is often a. a statement of “no effect” or “no difference.” b. the probability of observing the data you actually obtained. c. a statement that the data are all 0. d. 0.05. 15. In assessing the validity of any test of hypotheses, it is good practice to a. examine the probability model that serves as a basis for the test by using...

Companies often develop and test hypotheses about their products. For example, car manufacturers will test their...

Companies often develop and test hypotheses about their products. For example, car manufacturers will test their cars to determine fuel efficiency and miles per gallon. To ensure that products are safe and that they perform as advertised, regulatory and consumer protection groups also test companies’ claims. For this Assignment, you are working at a firm that conducts independent testing for heavy industry. Recently, an automobile manufacturer has been in the news for complaints about the highway gas mileage of their...

We know that sample statistics vary. How does a hypothesis test and p-value take into account...

We know that sample statistics vary. How does a hypothesis test and p-value take into account the reality of sampling variability?

We all know how important it is to pre-test a questionnaire before it is “launched”. Who...

We all know how important it is to pre-test a questionnaire before it is “launched”. Who would be the ideal “respondent” to use for pre-testing a questionnaire?

How do you know the income is useful for investors?

Conduct a hypothesis test to determine if companies with negative revenue change tend to be on the...

Conduct a hypothesis test to determine if companies with negative revenue change tend to be on the (500) market less time (and/or how much less time)? The data is below. Please show all work in excel. Company Name Revenue Change # Years on Fortune 500 List Walmart 3.00% 24 Exxon Mobil 17.40% 24 Berkshire Hathaway 8.30% 24 Apple 6.30% 24 UnitedHealth Group 8.80% 24 McKesson 3.10% 24 CVS Health 4.10% 24 Amazon.com 27.10% 17 AT&T -2.00% 24 General Motors -5.50% 24...

Most companies have both transactional and relational customers. How should companies treat transactional customers?

Question