Statistics (3 Problems) Due 9/2 Midnight EST
Week 2 - AssignmentProblem Set: Week Two Complete theproblems below and submit your work in one Word document. Be sure to show all of your work and clearlylabel all calculations. Calculationscompleted in Excel must be copied and pasted into a single Word document. No Excel documents will be graded. TIP: For helpcopying and pasting information from Excel to Word go tohttp://office.microsoft.com/en-us/word-help/copy-excel-data-or-charts-to-word-HP010198874.aspxor watch the “Excel Tips - Tip#48: Copy from Excel to Word” found in Week OneRecommended Resources. Problem One Suppose that anautomotive parts and accessories chain is experimenting with a new salespromotion. Two similar stores are selected for the experiment. For Store 1,nothing changes. This store constitutes the control group. For Store 2, thetreatment group, the promotion is implemented. Sales in hundredsof 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 expectationthat sales will be higher in the treatment group makes this a one-tailed test;the alternate hypothesis is m1 < m2. Use Excel to determine whetherdifferences between the two groups are statistically significant. Show all of yourwork and clearly label each of your calculations. Share your calculations and yourinterpretations of your findings in your Word document. Problem Two. Suppose that ahome builder is approached by a customer who wants to move in as soon aspossible. The customer chooses three home designs that she likes and asks thehome builder which one could be completed the fastest. To compare the three designs on speed ofcompletion, the builder randomly selects 10 homes that he built in the pastbased on each of the three designs. Use the ExcelAnalysis ToolPak to run an ANOVA test in order to determine which design wouldbe best for the customer. Show all ofyour work and clearly label each of your calculations. Make sure to also clearly describe therespective data and your conclusions. The data for thenumber 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 moreinformation on conducting an ANOVA test in Excel reference the Week TwoRecommended Resources. Problem Three An insurancecompany is reviewing its current policy rates. When originally setting therates they believed that the average claim amount was $1,800. Now there areconcerns that if the true mean is actually higher than this they couldpotentially lose a lot of money. They randomly select 40 claims, and calculatea 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 companyshould be concerned. Show all of yourwork and clearly label each of your calculations. Share your calculations from Excel and yourinterpretations of your findings in your Word document. Copy and pasteyour calculations for the three problems from Excel to Word and submit one Worddocument with your clearly labeled calculations and interpretations.
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