Introduction to Business Statistics
Introduction to Business Statistics
7th Edition
ISBN: 9781111792374
Author: WEIERS
Publisher: Cengage Learning
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Chapter 4.4, Problem 4.15E
To determine

(a)

To identify:

The dependent and independent variables involved in the experiment.

To determine

(b)

To check:

Whether a control group is present in the experiment.

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Suppose you work as a manager for a large clothing store. You are considering introducing a loyalty program to encourage customers to spend more at your store. Before rolling out your program to the public, you want to do a small experiment to estimate its effectiveness. You offer the loyalty program to 10 random customers, and also observed the sales of 27 random customers who did not get the program as a control group. The customers that were part of the loyalty program had average monthly sales of $302.57 and a sample standard deviation of $49.73. For the control group, the customers had an average monthly sales of $231.65 and a sample standard deviation of $67.88. * Given a 95% confidence interval critical value of t = 2.04, what is the upper bound (upper end) of a 95% confidence interval for the difference between two averages? Use (μloyalty program no loyalty program) for the order. Note: 1- Only round your final answer. Round your final answer to two decimal places.
Which technique for gathering data (observational study or experiment) do you think was used in the following study? The Colorado Division of Wildlife caught 41 bighorn sheep on Mt. Evans and gave each one an injection to prevent heartworm. A year later, 38 of these sheep did not have heartworm, while the other three did. A. This is an observational study because a treatment was deliberately imposed on the individuals in order to observe a possible change in the response or variable being measured.   B. This is an experiment because a treatment was deliberately imposed on the individuals in order to observe a possible change in the response or variable being measured.       C. This is an observational study because observations and measurements of individuals are conducted in a way that doesn't change the response or the variable being measured.
Suppose you work as a manager for a large clothing store. You are considering introducing a loyalty program to encourage customers to spend more at your store. Before rolling out your program to the public, you want to do a small experiment to estimate its effectiveness. You offer the loyalty program to 22 random customers, and also observed the sales of 17 random customers who did not get the program as a control group. The customers that were part of the loyalty program had average monthly sales of $309.90 and a sample standard deviation of $47.14. For the control group, the customers had an average monthly sales of $261.93 and a sample standard deviation of $63.25. Given a 95% confidence interval critical value of t* = 2. 10, what is the upper bound (upper end) of a 95% confidence interval for the difference between two averages? Use (μloyalty program Hno loyalty program) for the order.

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