27.) Use the following information to answer questions 27 & 28:

A statistics teacher wants to see if there is any difference in the performance of students on the final exam if she gives them orange jelly beans before the exam. She has a theory that orange jelly beans will change the results, but she isn't sure in which direction. She knows that the population mean score on the exam when students do not have orange jelly beans is 82 and that exam scores have an approximately symmetric distribution. She gives orange jelly beans to 25 randomly selected students and finds that these students had a sample mean score of 87 with a sample standard deviation of 10. She wants to have 95% confidence in her result.

27.) Conduct a hypothesis test using the p-value approach.

28.) Conduct a hypothesis test using the confidence interval approach.

Need Linear Regression Analysis done for the following data:

#1 Use the given data to find the equation of the regression line. Round the final values to three significant digits, if necessary. (2, 7), (4, 11), (5, 13)

#2 Use the given data to find the equation of the regression line. Round the final values to three significant digits, if necessary. (47, 8), (46, 10), (27, 10)

The following data are costs (in cents) per ounce for nine different brands of sliced Swiss cheese. 27 64 38 44 70 81 47 52 49

a) Calculate the variance for this data set. (Round your answer to three decimal places.)

b) Calculate the standard deviation for this data set. (Round your answer to three decimal places.)

Consider the following data:

a. Calculate the profit for each quantity. How many units should this firm produce to maximize profit?

b. Calculate MR for each quantity. Calculate MC for each quantity. Does the profit-maximizing formula support your answer from part a?

c. Is this firm perfectly competitive? How do you know? Is it in the long-run equilibrium? How do you know?

d. Depict the graph.

In 2006 you joined a group of 20 Richland College graduates to start a company that provides innovative tutoring and educational services You are responsible for all accounting activities. After applying to the Secretary of State in Austin, Shannon’s Tutoring Corporation (STC) received its corporate charter and began business as a Texas Corporation on December 1, 2006. During the first month of business the following Transactions occurred. You must analyze each transaction’s effect on the Accounting Equation and Prepare the Income Statement, Statement of Retained Earnings and the Balance Sheet for the Year ended 12/31/2006.

We discovered that 650 GSS respondents in 2006 watched television for an average of 2.98 hrs/day, with a standard deviation of 2.4 hours. Answer the following questions, assuming the distribution of the number of television hours is normal. What is the Z score for a person who watches more than 8 hrs/day. What proportion of people watch 5 hrs/day or more television? How many does this correspond to in the sample? What number of television hours per day corresponds to a Z +1. What is the percentage of people who watch between 1 and 6 hours of television per day? Please round to a whole numbe

We discovered that 650 GSS respondents in 2006 watched television for an average of 2.98 hrs/day, with a standard deviation of 2.4 hours. Answer the following questions, assuming the distribution of the number of television hours is normal. What is the Z score for a person who watches more than 8 hrs/day. What proportion of people watch 5 hrs/day or more television? How many does this correspond to in the sample? What number of television hours per day corresponds to a Z +1. What is the percentage of people who watch between 1 and 6 hours of television per day? Please round to a whole number

Case:

Pandora is the Internet’s most successful subscription radio service. In May 2014, Pandora had 77 million registered users. Pandora accounts for over 9 percent of total U.S. radio listening hours. The music is delivered to users from a cloud server, and is not stored on user devices.

It’s easy to see why Pandora is so popular. Users are able to hear only the music they like. Each user selects a genre of music based on a favorite musician or vocalist, and a computer algorithm puts together a “personal radio station” that plays the music of the selected artist plus closely related music by different artists. The algorithm uses more than 450 factors to classify songs, such as the tempo and number of vocalists. These classifications, in conjunction with other signals from users, help Pandora’s algorithms select the next song to play.

People love Pandora, but the question is whether this popularity can be translated into profits. How can Pandora compete with other online music subscription services and online stations that have been making music available for free, sometimes without advertising? “Free” illegally downloaded music has also been a significant factor, as has been iTunes, charging 99 cents per song with no ad support. At the time of Pandora’s founding (2005), iTunes was already a roaring success.

Pandora’s first model was to give away 10 hours of free music and then ask subscribers to pay $36 per month for a year once they used up their 10 free hours. Result: 100,000 people listened to their 10 hours for free and then refused to pay for the annual service. Facing financial collapse, in November 2005 Pandora introduced an ad-supported option. In 2006, Pandora added a “Buy” button to each song being played and struck deals with Amazon, iTunes, and other online retail sites. Pandora now gets an affiliate fee for directing listeners to sites where users can buy the music. In 2008, Pandora added an iPhone app to allow users to sign up from their smartphones and listen all day if they wanted. Today, 70 percent of Pandora’s advertising revenue comes from mobile.

In late 2009 the company launched Pandora One, a premium service that offered no advertising, higher quality streaming music, a desktop app, and fewer usage limits. The service costs $4.99 per month. A very small percentage of Pandora listeners have opted to pay for music subscriptions, with the vast majority opting for the free service with ads. In fiscal 2013 Pandora’s total revenue was $427.1 million, of which $375.2 million (88 percent) came from advertising.

Pandora has been touted as a leading example of the “freemium” revenue model, in which a business gives away some services for free and relies on a small percentage of customers to pay for premium versions of the same service. If a market is very large, getting just 1 percent of that market to pay could be very lucrative— under certain circumstances. Although freemium is an efficient way of amassing a large group of potential customers, companies, including Pandora, have found that it is challenging to convert people enjoying the free service into customers willing to pay. A freemium model works best when a business incurs very low marginal cost, approaching zero, for each free user of its services, when a business can be supported by the percentage of customers willing to pay, and when there are other revenues like advertising fees that can make up for shortfalls in subscriber revenues.

In Pandora’s case, it appears that revenues will continue to come overwhelmingly from advertising, and management is not worried. For the past few years, management has considered ads as having much more revenue-generating potential than paid subscriptions and is not pushing the ad-free service. By continually refining its algorithms, Pandora is able to increase user listening hours substantially. The more time people spend with Pandora, the more opportunities there are for Pandora to deliver ads and generate ad revenue. The average Pandora user listens to 19 hours of music per month.

Pandora is now intensively mining the data collected about its users for clues about the kinds of ads most likely to engage them. Pandora collects data about listener preferences from direct feedback such as likes and dislikes (indicated by thumbs up or down on the Pandora site) and “skip this song” requests, as well as data about which device people are using to listen to Pandora music, such as mobile phones or desktop computers. Pandora uses these inputs to select songs people will want to stick around for, and listen to. Pandora has honed its algorithms so they can analyze billions more signals from users generated over billions of listening minutes per month.

As impressive as these numbers are, Pandora (along with other streaming subscription services) is still struggling to show a profit. There are infrastructure costs and royalties to pay for content from the music labels. Pandora’s royalty rates are less flexible than those of its competitor Spotify, which signed individual song royalty agreements with each record label. Pandora could be paying even higher rates when its current royalty contracts expire in 2015. About 61 percent of Pandora’s revenue is currently allocated to paying royalties. Advertising can only be leveraged so far, because users who opt for free ad-supported services generally do not tolerate heavy ad loads.

CASE QUESTION:

What e-commerce revenue models are Pandora using? How does Pandora generate money with the revenue models? Explain your answer?

1. A retail store chain with 2 locations is worried that Store #2 is not being patroned by enough male customers. They want to run a hypothesis test that the percent of customers that are male is the same at both locations. They have collected the following data. Refer to Store #1 as Population 1 and Store #2 as Population 2, and answer the following questions leading up to the hypothesis test.

Store #1(population) 1 Customers surveyed = 400 ,Number that were male = 192

Store 2- (population -2)  Customers surveyed = 300 ,  Number that were male = 138

(a) What is the estimate of the proportion in population 1? (b) What is the estimate of the proportion in population 2?

(c) What is the estimate of the difference between the two population proportions?

(d) What is the standard error of the difference between the two population proportions?

(e) Develop a 90% confidence interval for the difference between the two population proportions.

(f) Develop a 95% confidence interval for the difference between the two population proportions.

(g) Develop a 99% confidence interval for the difference between the two population proportions.

(h) What is the pooled estimate of p?

(i) What is the test statistic (z -value)?

(j) What is the p-value? (k) Given α = 0.10, what is your conclusion? (l) Given α = 0.05, what is your conclusion? (m) Given α = 0.01, what is your conclusion?