Question

In: Statistics and Probability

A telemarketer is trying two different sales pitches to sell a carpet cleaning service. For his...

A telemarketer is trying two different sales pitches to sell a carpet cleaning service. For his aggressive pitch, 175 people were contacted by phone and 62 of those people bought the cleaning service. For his passive pitch, 154 people were contacted by phone and 45 of those people bought the cleaning services. Does this indicate that there is any difference in population proportions of people who will buy the cleaning services depending on which sales pitch is used? Use α=0.05

a.Details given in problem

b.Assumptions if any

c.Null Hypothesis, Alt Hypothesis, and the tailed test

d.Critical Statistic

e.Compute test statistic

f.Compute p-value

g.At ___% level of significance, we have ______ evidence to reject Null Hypothesis

h.Since p-value ____ α at ___% level of significance, we have ______evidence to reject the Null Hypothesis

Solutions

Expert Solution

Let denote the population proportions of people who will buy the cleaning services for aggressive pitch and passive pitch respectively.

b) Assumptions : not needed

c) - f)

g) At 5% level of significance, we have insufficient evidence to reject Null Hypothesis.

h) Since p-value > α at 5% level of significance, we have insufficient evidence to reject Null Hypothesis.


Related Solutions

A telephone sales solicitor, trying to decide between two alternative sales pitches, randomly alternated between them...
A telephone sales solicitor, trying to decide between two alternative sales pitches, randomly alternated between them during a day of calls. Using approach A, 20% of 100 calls led to requests for the mailing of additional product information. For approach B in another 100 calls, only 14 % led to requests for the product information mailing. At the 0.05 significance level, can we conclude that the difference in results was due to chance? Construct the 95% confidence level for the...
5. A telephone sales solicitor, trying to decide between two alternative sales pitches, randomly alternated between...
5. A telephone sales solicitor, trying to decide between two alternative sales pitches, randomly alternated between them during a day of calls. Using approach A, 20% of 100 calls led to requests for the mailing of additional product information. For approach B in another 100 calls, only 14 % led to requests for the product information mailing. .At the 0.05 significance level, can we conclude that the difference in results was due to chance? - Construct the 95% confidence level...
The Scrub Professional Cleaning Service receives preliminary sales contracts from two sources: (1) its own agents...
The Scrub Professional Cleaning Service receives preliminary sales contracts from two sources: (1) its own agents and (2) building managers. Historically, 1/4 of the contracts have come from Scrub agents and 3/4 from building managers. Unfortunately, not all preliminary contracts result in actual sales contracts. Actually, only 3/8 of those preliminary contracts received from building managers result in a sale, whereas 7/8 of those received from Scrub agents result in sale. The net return (payoff) to Scrub from a sale...
Several years ago, your client, Brooks Robinson, started an office cleaning service. His business was very...
Several years ago, your client, Brooks Robinson, started an office cleaning service. His business was very successful, owing much to his legacy as the greatest defensive third baseman in major league history and his nickname, “The Human Vacuum Cleaner.” Brooks operated his business as a sole proprietorship and used the cash method of accounting. Brooks was advised by his attorney that it is too risky to operate his business as a sole proprietorship and that he should incorporate to limit...
Several years ago, your client, Brooks Robinson, started an office cleaning service. His business was very...
Several years ago, your client, Brooks Robinson, started an office cleaning service. His business was very successful, owing much to his legacy as the greatest defensive third baseman in major league history and his nickname, “The Human Vacuum Cleaner.” Brooks operated his business as a sole proprietorship and used the cash method of accounting. Brooks was advised by his attorney that it is too risky to operate his business as a sole proprietorship and that he should incorporate to limit...
A company is trying to decide between TWO projects that would provide the same necessary service...
A company is trying to decide between TWO projects that would provide the same necessary service and each project can be repeated indefinitely at the same cost and same cash flows. The first project costs $7,000 and is expected to generate cash flows of $4,250 for NINE years. The second project cost $10,000 and is expected to generate cash flows of $4,400 for ELEVEN years While the replacement chain approach is a valid option, you currently cannot use a spreadsheet...
Tom is working on his universe conquest plan and is trying to decide between two mutually...
Tom is working on his universe conquest plan and is trying to decide between two mutually exclusive crusades led by his daughters Nebula and Gamora. The returns from each crusade is listed below: Year-end Cash-Flow Project 0 1 2 3 IRR Nebula -30 15 20 10 24.81% Gamora -80 39 52 15 17.59% Tom can undertake only one crusade? If you were his consultant, which crusade would you advise and why? Assume that cost of capital for Tom is 8%
You are trying to develop a strategy for investing in two different stocks. The anticipated annual...
You are trying to develop a strategy for investing in two different stocks. The anticipated annual return for a $1,000 investment in each stock under four different economic conditions has the following probability distribution: Probability : 0.1 , 0.3, 0.3 , 0.3 . Economic Condition: Recession, slow growth, moderate growth, fast growth. Return} -Stock X: -100 , 0 , 80 , 150 . - Stock Y: 50 , 150 , -20 , -100 . a) Covariance of stock X and...
We are trying to maximise the lifetime of a particular engine by testing two different types...
We are trying to maximise the lifetime of a particular engine by testing two different types of maintenance schedule. We test Schedule A on 40 engines which leads to an average lifetime of 13.2 years with a standard deviation of 3.1. We test Schedule B on another 40 engines which leads to an average lifetime of 10.4 years with a standard deviation of 2.1. The 98.5% confidence interval for the difference in the lifetimes is given by: A. [1.64,3.96] B....
You are trying to develop a strategy for investing in two different stocks. The anticipated annual...
You are trying to develop a strategy for investing in two different stocks. The anticipated annual return for a​ $1,000 investment in each stock under four different economic conditions has the probability distribution shown to the right. Complete parts​ (a) through​ (c) below. Probability Economic condition Stock_X Stock_Y 0.1 Recession -150 -170 0.2 Slow_growth    20 50 0.4 Moderate_growth 100 130 0.3 Fast_growth 160 210 a. Compute the expected return for stock X and for stock Y. The expected return...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT