A marketing research firm wishes to compare the prices charged by two supermarket chains—Miller’s and Albert’s. The research firm, using a standardized one-week shopping plan (grocery list) makes identical purchases at 10 of each chain’s stores. The stores for each chain are randomly selected, and all purchases are made during a single week. It is found that the mean and the standard deviation of the shopping expenses at the 10 Miller’s stores are $121.92 and $1.40, respectively. It is also found that the mean and the standard deviation of the shopping expenses at the 10 Albert’s stores are $114.81 and $1.84, respectively. Assuming normality, test to see if the corresponding population variances differ by setting α equal to .05. Is it reasonable to use the equal variances procedure to compare population means? Explain.
Answer to relevant QuestionsIn the book Essentials of Marketing Research, William R. Dillon, Thomas J. Madden, and Neil H. Firtle discuss evaluating the effectiveness of a test coupon. Samples of 500 test coupons and 500 control coupons were randomly ...a. Set up the null and alternative hypotheses needed to test whether the mean debt-to-equity ratio for all “target firms” differs from the mean debt- to- equity ratio for all “bidder firms.” Test these hypotheses at ...Define the meaning of the terms response variable, factor, treatments, and experimental units. A telemarketing firm has studied the effects of two factors on the response to its television advertisements. The first factor is the time of day at which the ad is run, while the second is the position of the ad within the ...Describe the characteristics that define a multinomial experiment.
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