PA6. - An increase in customer satisfaction scores would explain a decline in sales. Group of answer choices True False
Added by Ronald R.
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Will improving customer service result in higher stock prices for the companies providing better service? "When a company's satisfaction score has improved over the prior year's results and is above the national average (75.3), studies show its shares have a good chance of outperforming the broad stock market in the long run." The following satisfaction scores of three companies for the 4th quarters of two previous years were obtained from an economic indicator. Assume that the scores are based on a poll of 70 customers from each company. Because the polling has been done for several years, the standard deviation can be assumed to equal 6 points in each case. Company Year 1 Year 2 Company A 73 76 Company B 74 77 Company C 77 78 (a) For Company A, is the increase in the satisfaction score from year 1 to year 2 statistically significant? Use α = 0.05. (Let μ1 = the satisfaction score for year 2 and μ2 = the satisfaction score for year 1.) State the hypotheses. H0: μ1 - μ2 = 0 Ha: μ1 - μ2 ≠ 0 Calculate the test statistic. (Round your answer to two decimal places.) Calculate the p-value. (Round your answer to four decimal places.) What is your conclusion? (b) Can you conclude that the year 2 score for Company A is above the national average of 75.3? Use α = 0.05. State the hypotheses. H0: μ ≤ 75.3 Ha: μ > 75.3 Calculate the test statistic. (Round your answer to two decimal places.) Calculate the p-value. (Round your answer to four decimal places.) What is your conclusion? (c) For Company B, is the increase from year 1 to year 2 statistically significant? Use α = 0.05. (Let μ1 = the satisfaction score for year 2 and μ2 = the satisfaction score for year 1.) State the hypotheses. H0: μ1 - μ2 ≤ 0 Ha: μ1 - μ2 > 0 Calculate the test statistic. (Round your answer to two decimal places.) Calculate the p-value. (Round your answer to four decimal places.) What is your conclusion? (d) When conducting a hypothesis test with the values given for the standard deviation, sample size, and α, how large must the increase from year 1 to year 2 be for it to be statistically significant? (Round your answer to two decimal places.)
Adi S.
R1.23: The chief operating officer wants to know if the 17th quarter's customer satisfaction survey result, 88, "is a statistically significant improvement of the mean at the 95% confidence level and why?" The following facts apply: The data are collected by a proper survey method and are normally distributed and two-tailed. The mean satisfaction result for the last 16 quarters is 85.8. The standard deviation of the population is 3.06. The standard error calculated by the data analysis software is 0.79 (n=15) (two-tailed t-statistic is 2.13). A. No, the mean is within the 95% confidence interval. B. Yes. The upper limit of the 95% confidence interval for the mean is less than 88 when corrected for the use of a population instead of a sample. C. No. The lower limit of the 95% confidence interval for the mean is greater than 88. D. Unable to form a conclusion. To determine a statistically valid answer, at least 30 quarters of data are required.
Rashmi S.
Will improving customer service result in higher stock prices for the companies providing the better service? "When a company's satisfaction score has improved over the prior year's results and is above the national average (currently 75.7 ), studies show its shares have a good chance of outperforming the broad stock market in the long run" (BusinessWeek, March 2,2009). The following satisfaction scores of three companies for the 4 th quarters of 2007 and 2008 were obtained from the American Customer Satisfaction Index. Assume that the scores are based on a poll of 60 customers from each company. Because the polling has been done for several years, the standard deviation can be assumed to equal 6 points in each case. Company Rite Aid Expedia J.C. Penney 2007 Score 73 75 77 2008 Score 76 77 78 a. For Rite Aid, is the increase in the satisfaction score from 2007 to 2008 statistically significant? Use a = .05. What can you conclude? b. Can you conclude that the 2008 score for Rite Aid is above the national average of 75.7? Use a = .05 c. For Expedia, is the increase from 2007 to 2008 statistically significant? Use a = .05 d. When conducting a hypothesis test with the values given for the standard deviation, sample size, and a, how large must the increase from 2007 to 2008 be for it to be statistically significant? e. Use the result of part (d) to state whether the increase for J.C. Penney from 2007 to 2008 is statistically significant.
Ivan K.
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