Assignment 1
* Please submit through the Blackboard system.
* No late submission is acceptable.
*List all relevant formulas, calculations, statistics, hypotheses, etc., with which
you solve the statistical problems.
* You MUST prepare and submit your answers in one file, which MUST be in
Microsoft Office Word format.
* If using computer software, you MUST copy and paste corresponding statistical
analysis results (e.g., outputs from Excel Data Analysis modules) into your solutions
and analysis parts of the Word file, to support your arguments.
* Please list full names of your team members on the first page of your submission.
* Each team must submit one and only one report online.
Part I:
Referring to the dataset of “Price.xls” attached, in which it contains information in
regard to the unit price levels of a product manufactured by your company, which are sold in two different areas (Area A and Area B). A marketing research team randomly selected 70 retail stores in Area A and 60 stores in Area B, and recorded selling prices of the product in those stores. As an assistant manager, you are required to conduct a formal hypothesis test to check whether it is statistically valid of the complains from customer groups that the selling price on average is higher in Area B, compared to that in Area A. In carrying out the test, please assume that the population variances are not equal. Use α=0.05 significance level for the test.
Part II:
Assume that you need to select a mail delivery service provider for your company’s daily mails. There are two candidates for you to choose from, carrier UPX and INTEX.
In testing the delivery times of these two carriers, you send two same packages to randomly selected district offices of your company, with one package through UPX and the other one via INTEX. The recorded delivery times measured in hours are listed in the following table. Based on the sample data, please use a formal hypothesis test to help your company select one mail delivery service provider (use α=0.05 significance Level for the test).
Note: Use paired sample t test for this case (not two–sample t test in which case you will have different results for business decision making).
Seattle 32 25
Los Angeles 30 24
Boston 19 15
Cleveland 16 15
N.Y.C. 15 13
Houston 18 15
Atlanta 14 15
St. Louis 10 8
Milwaukee 7 9
Denver 16 11
