Question

In: Statistics and Probability

RCA has developed five alternative album covers for the new Clay Aiken cd. On cover one,...

RCA has developed five alternative album covers for the new Clay Aiken cd. On cover one, Clay is surrounded by kitties. On cover two, Clay is surrounded by beautiful women in revealing swimwear. On cover three, Clay’s face has been painted to look like Peter Criss of the rock & roll band “Kiss.” On cover four, Clay is pictured playing miniature golf with his friend Ruben. On cover five, all the viewer sees is a close-up of Clay’s freshly-ironed hair. 20 subjects are shown cover 1 and asked a 5-point (1=strongly agree to 5=strongly disagree) Likert question “I want to buy this CD”, with a mean response of 4.4. 20 subjects are shown cover 2 and asked the same question, with a mean response of 2.05. 20 subjects are shown cover 3 and asked the same question with a mean response of 2.95. 20 subjects are shown cover 4 and asked the same question with a mean response of 3.20. Finally, 20 subjects are shown cover 5 and asked the same question with a mean response of 1.95. The grand mean response across all covers was 2.91. RCA researchers Tiffany Kiessling and Erica Hernandez have begun the analysis, but the computer has broken down before their analysis was complete. Take what is left and sort out the details, testing at the 0.05 level.

SSA = 79.34 SSE = 146.85

State Hypotheses:

Show work:

What is the value of the test statistic?

What is the value of the standard?

What is the result of the test?

Expert Solution

Let the mean for the response to cover 1 be 1 , the mean for the response to cover 2 be 2 ,the mean for the response to cover 3 be 3 , the mean for the response to cover 4 be 4 , the mean for the response to cover 15be 5.

The null hypothesis is given by

and the alternative hypothesis is given by

H1: at least one is different.

SSA=79.34

SSE=146.85

df of SSA is 4 and df of SSE is 19*4=76

Let the test statistic be denoted by F.

The test statistic follows F distribution with df 4,76

The value of the standard is given from the Biometrika table as

As the observed value is more than the critical value, we reject the null hypothesis at 5% level of significance and thus conclude that the means are not equal i.e. there exists significant difference between the means.

Hopefully this will help you. In case of any query, do comment. If you are satisfied with the answer, give it a like. Thanks.

orchestra answered 2 years ago

The file CD Rate contains yields for a one-year certificate of deposit (CD) and a five-year...

The file CD Rate contains yields for a one-year certificate of deposit (CD) and a five-year CD for 39 banks listed for West Palm Beach, Florida on January 9, 2017. For each type of investment, decide whether the data appear to be approximately normally distributed by: a. comparing data characteristics to theoretical properties. b. constructing a normal probability plot Bank One-Year Five-Year 5 Star Bank 1.00 1.60 Alostar Bank of Commerce 1.05 1.66 Amalgamated Bank 0.50 1.10 AmTrust Bank 0.40...

XYZ Ltd. has developed a new product which is expected to have a life of five...

XYZ Ltd. has developed a new product which is expected to have a life of five years before it becomes obsolete. The project would be terminated after five years. The plant and equipment is expected to have a salvage value of $500,000 at the end of the project’s life. The company is in the tax bracket of 30 per cent and required return for this project is 15 per cent. XYZ Ltd. has put together the following information about the...

The Randolph Limited has decided to acquire a new truck. One alternative is to lease the...

The Randolph Limited has decided to acquire a new truck. One alternative is to lease the truck on a 4-year guideline contract for a lease payment of R10,000 per year, with payments to be made at the beginning of each year. The lease would include maintenance. Alternatively, Randolph Limited could purchase the truck outright for R40,000, financing the purchase by a bank loan for the net purchase price and amortizing the loan over a 4-year period at an interest rate...

A research lab has developed a new instructional technique for statistics. They chose five class topics...

A research lab has developed a new instructional technique for statistics. They chose five class topics and completed five separate studies. For each study, they selected a new sample of students, used the new technique to teach the specific topic, then gave the sample of students a test on that topic. Below are the mean test scores for each of the five studies, along with the population means for students taking the test after the 'traditional' instructional technique. For each...

if a trader in one country has to pay a premium for forward cover does the...

if a trader in one country has to pay a premium for forward cover does the trader in the other country have to pay a premium or do they get a subsidy or neither. I think the question means that Trader A is from country A trying to purchase currency B and pays a premium, so would trader B From country B have to pay a premium or receive subsidy or nothing to purchase currency A?? So far i know...

The product development group of a high-tech electronics company developed five proposals for new products....

The product development group of a high-tech electronics company developed five proposals for new products. The company wants to expand its product offerings, so it will undertake all projects that are economically attractive at the company’s interest rate of 15% per year. The cash flows (in $1000 units) associated with each project are estimated. Which projects, if any, should the company accept on the basis of a present worth analysis? A B C D E Initial investment, $ -800...

The product development group of a high-tech electronics company developed five proposals for new products. The...

The product development group of a high-tech electronics company developed five proposals for new products. The company wants to expand its product offerings, so it will undertake all projects that are economically attractive at the company’s MARR of 16% per year. The cash flows (in $1000 units) associated with each project are estimated. Which projects, if any, should the company accept on the basis of a present worth analysis? Project A B C D E Initial Investment $-700 $-300 $-400...

We developed a new product, and our management believes that it will sell for one or...

We developed a new product, and our management believes that it will sell for one or two years before it is obsolete. Management thinks that there is 4 alternative options with this new product. The following Payoff table demonstrates all the options and the nature of each decision. Suppose a prior probability of 0.75 of the product becoming obsolete in 1 year. Alternatives Obsolete in 1 year [ 0.75 ] Obsolete in 2 year [ 0.25 ] Sell patents now...

A government agency has 6000 employees. As an alternative to the traditional five day work week,...

A government agency has 6000 employees. As an alternative to the traditional five day work week, employees were asked whether they preferred a four day work week (10 hours per day) or flexible hours. The table below shows the results by age category. Which of the following statements is TRUE about work week preferences and age category? Age Category Prefers 4 Day Week Prefers Flex Hours Under 30 600 300 30minus−45 1200 1500 Over 45 2100 300 A. Work week...

B Inc. has developed a new product, and the consumers are interested in it. As a...

B Inc. has developed a new product, and the consumers are interested in it. As a result, the firm projects the growth rate of dividends is 20% per year for 4 years. By then, other firms will develop similar products, competition will drive down profit margins, and the sustainable growth rate will fall to 6%. B Inc. just paid annual dividend of $1 per share. The required return on the company’s stock is 10%. What is the stock price today?...