# Statistics (3 Problems) Due 9/2 Midnight EST

**Question description**

Week 2 - Assignment

Problem Set: Week Two

Complete the

problems below and submit your work in one Word document. Be sure to show all of your work and clearly

label all calculations. Calculations

completed in Excel must be copied and pasted into a single Word document. No Excel documents will be graded.

TIP: For help

copying and pasting information from Excel to Word go to

http://office.microsoft.com/en-us/word-help/copy-excel-data-or-charts-to-word-HP010198874.aspx

or watch the “Excel Tips - Tip#48: Copy from Excel to Word” found in Week One

Recommended Resources.

Problem One

Suppose that an

automotive parts and accessories chain is experimenting with a new sales

promotion. Two similar stores are selected for the experiment. For Store 1,

nothing changes. This store constitutes the control group. For Store 2, the

treatment group, the promotion is implemented.

Sales in hundreds

of dollars over a five-day period are as follows:

Control: 6, 6,

7, 10, 12, 9, 6, 5, 5, 7

Treatment: 2,

5, 2, 4, 7, 1, 2, 3, 4, 5

The expectation

that sales will be higher in the treatment group makes this a one-tailed test;

the alternate hypothesis is m1 < m2. Use Excel to determine whether

differences between the two groups are statistically significant.

Show all of your

work and clearly label each of your calculations. Share your calculations and your

interpretations of your findings in your Word document.

Problem Two.

Suppose that a

home builder is approached by a customer who wants to move in as soon as

possible. The customer chooses three home designs that she likes and asks the

home builder which one could be completed the fastest. To compare the three designs on speed of

completion, the builder randomly selects 10 homes that he built in the past

based on each of the three designs.

Use the Excel

Analysis ToolPak to run an ANOVA test in order to determine which design would

be best for the customer. Show all of

your work and clearly label each of your calculations. Make sure to also clearly describe the

respective data and your conclusions.

The data for the

number of days to build each home are as follows:

Design A: 15,

17, 19, 21, 23, 25, 27, 29, 31, 33

Design B: 29,

34, 39, 44, 49, 54, 59, 64, 69, 74

Design C: 22,

24, 25, 27, 28, 28, 29, 31, 33, 34

For more

information on conducting an ANOVA test in Excel reference the Week Two

Recommended Resources.

Problem Three

An insurance

company is reviewing its current policy rates. When originally setting the

rates they believed that the average claim amount was $1,800. Now there are

concerns that if the true mean is actually higher than this they could

potentially lose a lot of money. They randomly select 40 claims, and calculate

a sample mean of $1,950. Assuming that the standard deviation of claims is

$500, and set significance level = :05, test to see if the insurance company

should be concerned.

Show all of your

work and clearly label each of your calculations. Share your calculations from Excel and your

interpretations of your findings in your Word document.

Copy and paste

your calculations for the three problems from Excel to Word and submit one Word

document with your clearly labeled calculations and interpretations.

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