CHAPTER 15

3. Market researchers will conduct a survey to find the strategies applied by shoe shop
managers to survive and earn profits in their business. this is due to market fluctuations
that force shoe shops to sell their products at markdown prices. The following conditions
need to be included when constructing survey questions:
1) Use bonuses to sell slow merchandise.
2) Track the time it takes for inventory to turn into sales.
3) Examine and audit the results of the strategies to be adopted. If your inventory is
large, apply styles such as cancellation of excess stock, factory discount, and close
purchases.
4) Avoid overloading sizes with the latest fashions to see trends. So, to cover these
results, all parameters are considered to attract a survey for shoe shop managers.
Survey for the shoe store managers
A. Buying Practice : Mention Not Mention
1. Less advance buying
2. Careful requirements planning
3. Buy closeouts, etc.
4. Better or more careful buying
5. Buy for cash
B. Product Selection : Strong Effort Weak Effort
1. Less style emphasis
2. Fewer resources/lines
3. Concentrate on in-stock shoes
4. Eliminate firing items
C. Price Reduction : Adopted Not Adopted
1. Small early markdowns
2. Do not markdown staples
D. Inventory control :
Continuous Periodical
1. Carefully check
2. Keep stock low

CHAPTER 16
2. a. Age and consumption of breakfast meal
Cross tabulation is my choice because there are two variables. I put the age in the far-
left column. In each row the row will represent each respective age. Meanwhile, the next
column is the amount or type of cereal consumed depending on the desired question.
b. Family income and confidence about family’s future
As before I also use cross tabs here. In the far left column I'll list the different income
ranges and each row will be realistic for a different family income. In each subsequent
column the percentage corresponds to whether those in the income group feel confident
on a scale of 1 to 5.
 c. Marital status and sport participation
Cross tabs are used to list two lines, married and unmarried. And then each column will
represent the sport and the percentage of how many people participate in that sport. The
last column will be marked as no exercise for those who do not exercise at all.
d. Crime rate and unemployment rate
Cross tabulation will be used to list the number of crime levels or the range of crime
rates on the left. Each row will represent the crime rate in that percentage or range. Then
each column will represent the unemployment range.
3. Based on the table presented, it can be seen that 80% of the general population who receive
financial assistance remain in college while 20% are expected to drop out of school at
some point. in the second variable whether students who receive financial assistance live
close to home or far from home show more significant numbers. Because now it can be
seen that students who live far from home have more dropout rates than those who live
near colleges. From this, it can be ascertained that students receiving financial assistance
and living close to the college will have a higher chance of success, and a greater chance
of graduation. Whereas the information not given in the table is what the dropout rate is
for students who do not receive financial assistance, and what is the dropout rate for all
students with or without assistance, regardless of near or far from home, and thus we
cannot distinguish whether assistance finance alone that contributes to dropping out of
school or not.
4. Appeal A is the best because it yields the highest percentage of contribution, with a 5%
increase in the middle class, and a 10% increase from the working class, compared to
Appeal B. The working class responds better in both cases, to both Appeals A and B. They
respond with a higher level for Appeal A. The middle class responded to only half of the
level of the working class. From the information provided, it appears that the working class
is the more giving group, but we can also assume that the working class has less to give.
Nonetheless, working class is a stronger independent variable than the letter used for
appeal, as 30% responded to Letter of Appeal B while another 10% increase resulted from
Letter of Appeal A (40% total contribution). The letter alone only resulted in a 10%
increase in contributions, but 3 out of 4 working classes would contribute based on both
letters.
5. Based on the table, it is found that hourly employees as a whole tend to have a higher
turnover rate than salaried employees. I can conclude that workers with less education
have a higher turnover rate than those with higher education. Urban associations also tend
to have a higher turnover rate than those from a rural background. Meanwhile, the group
with the lowest turnover rates are employees who are highly educated, have grown up in
rural areas, and have paid salaries. And the group with the highest turnover rates are those
with the least education, who grew up in urban settings, and are paid hourly wages.
6. a. The equipment made by company A is the device used by the respondent during the day.
Because company A has a bendable screen that can be used to display visuals. The
following are stimuli that can be presented in a number of ways:
• A stimulus can be given to track the daily activities of the respondent such as eating,
sleeping, running, reading etc. Respondents can record activities by tapping the
screen. After the activity is finished, the respondent can tap the screen again to enter
data. So that the daily activities of the respondent's data can be tracked during the
 week, and the data collected can be analyzed to understand the daily patterns of the
respondents.
• Stimulus can be given by respondents throughout the day in terms of time to eat food,
drinking water and the number of calories consumed. The data is traceable for
respondents to provide a personalized healthy diet plan.
• Stimulus can be provided as push notifications on watch faces regarding shopping
discounts and offers at the point of purchase.
• A stimulus can be given as a boost to the respondent which functions as a memory aid
for the individual suffering from a brain injury or memory loss. The stimulus will help
train the patient's brain cells.
b. Interactive data exchange using the top of the wrist computer has very high potential
for researchers. The smartwatch is always connected to the internet where it can make
calls, and process data. The internet of things can be used by researchers to collect large
amounts of electronic data related to lifestyle, environment, nature, activities, etc.
Sensors can be added to the wrist computer for motion detection, heart rate, activity
recognition, etc. All data relating to the daily use of an individual can be made available
to researchers for analysis

CHAPTER 17

5. a. You can move critical values farther from the expected mean, expand the region of acceptance
and reduce the area of rejection in order to reduce the probability of a Type I error. You can also
hold the same critical value but increase the sample size.
b. How does practical significance differ from statistical significance? Practical significance is
whether the difference exists is of any useful value to make a decision. Statistical significance is
concerned whether there is actually a difference or not.
c. It’s significant because the difference is based on the census of the classes and no sampling is
involved
6. Given the hypothesis that ad placement success is not related to gender, the most correct hypothesis
testing procedure in this instance is that of a one-sample test, which is used when we have a single
sample (the 200 applicants in this case) and wish to test the hypothesis that it comes from a
specified population (Cooper, 2014 p 444). A parametric test wouldn’t work, due to the one-
sample situation, so a nonparametric test should be used. Of these, the Chi-Square test is the most
widely used, it tests for significant differences between the observed distribution of data and the
expected distribution based on the null hypothesis and would be appropriate for use in this
situation. (b) A company manufacturers and markets automobiles in two different countries. We
want to know if the gas mileage is the same for vehicles from both facilities. There are samples of
45 units from each facility. A: Given this scenario of two sets of cars which are manufactured in
two different countries by the same manufacturer, determining gas mileage similarity or difference
by manufacturing facility location, the two-independent-samples test could be used. Given the
large sample size of 45, a Z parametric test is the most appropriate hypothesis testing procedure
for the sample. (c) A company has three categories of marketing analysts: (1) with professional
qualifications but without work experience, (2) with professional qualifications and with work
experience, and (3) without professional qualifications but with work experience. A study exists
that measures each analyst’s motivation level (classified as high, normal, and low). A hypothesis
of no relation between analyst category and motivation to be tested. A: In this setting there are
three categories of marketing analysts, and in testing a null hypothesis of no relationship between
motivation and category of analyst, again, the use of a Chi-Square test could be used for testing of
 differences between the observed distribution of data and the expected distribution based on the
null hypothesis (Copper, 2014, p. 445). (d) A company has 24 salespersons. The test must evaluate
whether their sales performance is unchanged or has improved after a training program.A: With
this small sample size, and with an evaluation being done before and after a training program, the
Two-Related-Samples nonparametric McNemar test is useful in cases of before and after
measurements of the same subjects, and could be used in this instance to test the significance of
any evaluated change in performance using a fourfold table of frequencies to represent the first and
second set of evaluations:

After
Before Good Poor
Good
Poor

7. When looking at this situation one can think that the hypothesis has almost no significant difference
between the survey and the data collected in the past 10 years. Basically, there is a null hypothesis,
and any differences would just be experimental. Testing a null hypothesis is an important step. “In
science, "proving" something doesn't occur. Science uses math to determine the probability a
statement is true or false. It turns out it's much easier to disprove a hypothesis than to ever prove
one.” (Halmenstine, 2018 p. NA) Ultimately, the difference of long-term average of 3.0 GPA and
the current survey average GPA of 3.2 is due to sampling variations. The decision here is finding
out if a sampling variation, in this case, could go as far as 0.2. A parametric test would be a great
way to figure out if the difference is significant. In order to calculate the value, there are a few
steps needed in the parametric test. By using the t-test the calculated value is 2.50. Using the Table-
C, the degrees of freedom is 24, thus the critical value is 1.711 wit alpha being 0.05. With all of
this presented, the calculated value being greater than the critical value helps us conclude that the
null hypothesis is rejected. This calculated value shows that the survey from this year is
significantly different from the 10-year average.
“The alpha-level specifies our attitude to the analysis. We use the value of alpha to characterize
our approach to the decision problem.” (Wheeler, 2014, p.NA) In order to find out what level alpha
would be significant the textbook is needed to be referenced. The turning point for alpha is 0.0197,
with the critical value being 2.492. At those levels the reference point becomes significant.
Anything above this value, like the example above, the student’s GPA are not significantly
different. However, anything blow is significantly different.

8. Data:
Let 𝑝̂ 1 represent the proportion of professors who say they are conservative.
Let 𝑞̂1 represent the proportion of professors who say they are not conservative.
Let 𝑝̂ 2 represent the proportion of students who say they are conservative.
Let 𝑞̂2 represent the proportion of students who say they are not conservative.
Then :
10
𝑝̂ 1 = 20 = 0.50
10
𝑞̂1 = = 0.50
20
6
𝑝̂ 2 = 20 = 0.30
14
𝑞̂2 = = 0.70
20
Since the samples are assumed to be independent of one another (since one sample is professors
while the other sample is student), and since the values of n1𝑝̂ 1, n2𝑝̂ 2, n1𝑞̂1, n2𝑞̂2 are all greater
than or equal to 5 we can use the z test.
And :
𝑥1+𝑥2 6+10 16
𝑝̅ = = = = 0.40
𝑛1+𝑛2 20+20 40
𝑞̅ = 1 - 𝑝̅ = 1 – 0.40 = 0.60
The five step hypothesis test is as follows :
Hypotheses :
Ho : p1 = p2
Ho : p1 ≠ p2
Critical values :
Since no specific level of significance is specified, a value of alpha = 0.05 will be used.
The critical values are then z = 1.96 and z =-1.96
Test value :

Decision :
Since the test value is between two critical values, the decision is to not reject the null hypothesis.
Summary :
There is not sufficient evidence at the 0.05 level of significance to support a claim that the
proportions are significantly different from one another.

Note : If you wanted to use significance level of 10%, instead of 5% as used above, the critical
values would be 1.645 and -1.645. The test value would still be between these two critical values
and the decision would be the same.
9. In order to test the null hypothesis, it is important to fully understand the terms and process. The
null hypothesis in this case is that there is no difference at all between the average salaries received
at the two universities. What we know is that Eastern University students received a higher salary
than Western University by an average of $800. Now, the fact that Eastern University students
receive a higher salary is the alternative hypothesis. The proper test for this situation, the best way
to test the null hypothesis, is the t-test. Like discussion question 14.7, the significance level was
chosen for alpha at 0.05. Using this, the test produces a calculated value of 3.436. The critical value
comes out to be 1.66. It is easy to see here that the calculated value is much higher than the critical
value. This means that the null hypothesis should be rejected. Therefore, that concludes that the
students from Eastern University received a higher annual starting salary.
“The first assumption made regarding t-tests concerns the scale of measurement. The assumption
for a t-test is that the scale of measurement applied to the data collected follows a continuous or
ordinal scale, such as the scores for an IQ test.” (Maverick, 2018, p. NA) Certain assumptions are
needed for the t-test to work. For one, having random samples that all come from normal
populations. The is to have it come from the same variance as well. “A random sample is a sample
that is chosen randomly. It could be more accurately called a randomly chosen sample. Random
samples are used to avoid bias and other unwanted effects.” (Hood, 2018, p. NA) This is needed
because it increases accuracy and allows an equal chance each time. When the deviations of sample
are equal, or close to equal, the variance is a critical assumption for the t-test. These assumptions
are needed for the test to conducted correctly.
10.

Favorable Neutral Unfavorable

Freshman 100 50 70
Sophomores 80 60 70
Juniors 50 50 80
Seniors 40 60 90

Unfavorable % Favorable Neutral Unfavorable

Interviewed
Freshman 220 27.5 74.25* 100 60.5* 50 85.2* 70
Sophomores 210 26.25 70.88* 80 57.75* 60 81.3* 70
Juniors 180 22.5 60.7* 50 49.5* 50 69.7* 80
Seniors 190 23.7 64.1* 40 52.2* 60 73.6* 90
Sum 100% 270 220 310
The appropriate sample test would be k sample test that is based on chi-square as the respons are
nominal in nature. Significance level for the test would be 0.05 and the calculation have been shown
below.
X2 = {(25.72 / 74.2) + (9.122 / 70.8) + (-10.72 / 60.7) + (-24.12 / 64.1) + … + (16.32 / 73.6)}
X2 = 33.6
The critical value from the table is found to be 12.5 at the significance level of 0.05 and the calculated
value greater thus, leads to rejection of null hypothesis.
Q6) You do a survey of business student and liberal arts school students to find out how many times a
week they read a daily newspaper. In each case, you interview 100 student, you find the following :
∈ 𝑚 = 4.5 𝑡𝑖𝑚𝑒𝑠 𝑝𝑒𝑟 𝑤𝑒𝑒𝑘
Sm = 1.5
∈ 𝑙𝑎 = 5.6 𝑡𝑖𝑚𝑒𝑠 𝑝𝑒𝑟 𝑤𝑒𝑒𝑘
Sla = -2.0
11. A difference between two or more sets of data is statistically significant if it actually occurs in a
population. To have a statistically significant finding based on sampling evidence, we must be able
to calculate the probability that some observed difference is large enough that there is little chance
it could result from random sampling (Schindler, 2019, p. 392). “Using large samples, however,
creates the issue of guaranteed statistical significance and thus demands reporting the practical
significance by using effect size measures” ( Khalilzadeh & Tasci, 2017, para. 1). In addition,
Schindler (2019) tells us that, “In selecting a significance test, one needs to know, at a minimum,
the number of samples, their independence or relatedness, and the measurement level of the data”
(p. 392). We can clearly see the number of samples in each group for this interview is 100 students.
Their relationship is that they are all students who read the newspaper each week, and they are
being measured by how many times they read each week. The two-related samples tests that are
used when cases (persons, objects, or events) are closely matched or the phenomena are measured
twice are the parametric test and the non-parametric test. Parametric tests are used when data are
derived from interval and ratio measurements; whereas, Nonparametric test are used to test
hypotheses with nominal and ordinal data. Both parametric and nonparametric tests are applicable
under these conditions. In testing the hypothesis that there is no significant difference between the
2 samples, the t-test, a non-parametric test or the Z-test, a parametric test could be utilized. The Z
test has been chosen for use in making this determination. It is appropriate for a sample of this size
because the sample is greater than 30 (Schindler, 2019, p. 376). The Z-test calculation shows the
p-value to be less than .05, therefore, the result is significant, and the null hypothesis is to be
retained. “A P value of 0.05 carries a 5% risk of a false positive result (i.e. there is no true difference
between treatments). If a trial is meant to provide proof of a genuine treatment difference beyond
reasonable doubt, a much smaller P vale – say p< 0.001 – is required” (O’Donnell, 2018, para. 4).
 Based upon the P-value determination, it is concluded that there is no significant difference
between the sample of marketing students and that of the liberal arts students. Just as there is no
significant difference in these population sample, there is also no differences between those who
accept Christ as their savior. The Bible tells us that, “For there is no difference between the Jew
and the Greek: for the same Lord over all is rich unto all that call upon him” (Romans 10:12 King
James Version). He created each human-being in His own image, and loves us all the same. Christ
died for each of us and “Of a truth I perceive that God is no respecter of persons: but in every
nation he that feareth him, and worketh righteousness, is accepted with him” (Acts 10:34-35).
12.
Ho: means are same ampng groups
H1: means are different.
We perform a one way ANOVA to compare means.
Anova: Single Factor

SUMMARY
Groups Count Sum Average Variance
Column 1 5 158 31.6 14.3
Column 2 5 133 26.6 38.3
Column 3 5 112 22.4 5.3

ANOVA
Source of
Variation SS df MS F P-value F crit
Between
Groups 212.1333 2 106.0667 5.495682 0.020216 3.88529
Within Groups 231.6 12 19.3

Total 443.7333 14
Decision:
As p value of F statistic <.05, there is difference among means at5%level of significance