You may need to use the appropriate appendix table or technology to answer this question. Will improving customer service result in higher stock prices for the companies providing the better service? "When a company's satisfaction score has improved over the prior year's results and is above the national average (75.9), studies show its shares have a good chance of outperforming the broad stock market in the long run." The following satisfaction scores of three companies for the 4th quarters of two previous years were obtained from an economic indicator. Assume that the scores are based on a poll of 70 customers from each company. Because the polling has been done for several years, the standard deviation can be assumed to equal 6 points in each case. Company Year 1 Year 2 Company A 73 76 Company B 74 77 Company C 77 78 (a) For Company A, is the increase in the satisfaction score from year 1 to year 2 statistically significant? Use a = 0.05. (Let #, = the satisfaction score for year 2 and #, = the satisfaction score for year 1.) State the hypotheses. O Ho: H1 - H2 > o Ha: Hi - H2so Ho: H1 - H2 50 Ha: H1 - H2 >0 O Ho: H1 - H2 75.9 O Ho: H 0O Ho: H1 - H2so H: H Calculate the test statistic. (Round your answer to two decimal places.) 1.97 X Calculate the p-value. (Round your answer to four decimal places.) p-value = .0244 X What is your conclusion? O Reject Ho. There is insufficient evidence to conclude that the customer service has improved for Company B. O Do not reject Ho. There is sufficient evidence to conclude that the customer service has improved for Company B. O Do not reject Ho. There is insufficient evidence to conclude that the customer service has improved for Company B. O Reject Ho. There is sufficient evidence to conclude that the customer service has improved for Company B. (d) When conducting a hypothesis test with the values given for the standard deviation, sample size, and a, how large must the increase from year 1 to year 2 be for it to be statistically significant? (Round your answer to two decimal places.) 1.67 (e) Use the result of part (d) to state whether the increase for Company C from year 1 to year 2 is statistically significant. The increase from Year 1 to Year 2 for Company C |is not v v statistically significant. Need Help? Read It