GROUP 2 FORUM 4 1
Group 2 Discussion Board Forum 4: Part 3
School of Business, Liberty University
GROUP 2 FORUM 2 2
Group 2 Discussion Board Forum 4: Part 3
Question 13.5: You study the attrition of entering college freshmen (those students who
enter college as freshmen but don’t stay to graduate). You find the following relationships
among attrition, aid, and distance of home from college.
Home Near Home Far
Aid Receiving Aid Receiving Aid
Yes No Yes No Yes No
%
% % % % %
Drop Out
25
20 5 15 30 40
Stay
75
80 95 85 70 60
Any college institution main goal is to retain and have as many student graduates from
Freshmen to Senior to profit from the tuition payments. Financial concerns are the number one
reason why students drop out of college, and the National Center of Education Statistics, the
attrition rate between first and second year is 25 percent (Ramsey, n.d.). Studies like this can
assist in lowering the attrition rates for colleges by exploring the cause and placing measures to
implement (skilled financial/guidance counselors) assisting with retaining students and getting
them over the threshold of graduation. “Ask, and it will be given to you; seek, and you will find;
knock, and it will be opened to you” (English Standard Version Bible, 2001, Matthew 7:7).
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What graphical displays would you choose to understand the data?
Home Near No Aid
Home Near Receiving Aid
Home Far No Aid
Home Far Receiving Aid
Total No Aid
Total Aid
0%
20%
40%
60%
80%
100%
15% 5%
40% 30% 20% 25%
85% 95%
60% 70% 80% 75%
Correlation of Graduation and Receiving Aid Rates
Drop Out Stay
The graphical display to utilize to understand the data is a bar graph with the cross-
tabulation technique. A bar graph may consist of either horizontal or vertical columns where the
greater length of the bars represents, the highergreater the value (Slutsky, 2014). The column bar
graphs are generally used for time series and for quantitative classifications (Schindler, 2019).
Also, the percentage of the data collected isare represented onin a scale of 0 to 100 percent and
reflects on the graph. The cross-tabulation technique is used to compare data from two or more
variables that resulting s in a table (Schindler, 2019). In this case, the variables are staying close
to home or far from home. This is simplified for visualization purposes and anyone can view the
chart and read the results. Schindler 2019 noted: A simple bar graphs are best for oral
presentations and more complex bar graphs showing more than two variables in a single chart,
can be used for written reports, but researchers must acknowledge the audience (p. 455).
What is your interpretation?
The interpretation from this study and the information collected on the graph can
conclude the variables and relationship reflects students who do not receive any financial aid has
a higher chance by five percent of going through and completing college as a graduate. With the
financial burden obsolete and a student not receiving assistanceaid allows them to concentrate
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solely on school because school is affordable and being paid for from privatepersonal sources
gives them a stronger obligation to complete all classes leading towards graduation. On the other
hand, the students receiving aid are not paying for the coursesclasses out of pocket they might
not view as an investment and if they are not disciplined, they might not show up to classes.
Students who are receiving aid that remaining closer to home have a lower drop-out rate.
The drop-out rate of students staying near home and receiving assistanceaid is 10 percent less
than who is near, but not receiving aid. rate. The drop-out rate of students staying further from
home and receiving aid is also 10 percent less than who is further away, but not receiving aid.
This can be due to the affordability factor of receiving aid to attend college and the access to
parents’ home and family and friends they can rely on to get them back and forth from school if
needed. Students who are, receiving aid that remaining further from home also have a lower
drop-out. Overall the rate of the student whose home is further from the college and receiving aid
is 25 percent more likely to drop-out than the students closer to home. Those receiving financial
aid have to file paperwork every year to make sure they remain qualified and might also have an
underlying financial burden. Even when one is not paying for school, they should be grateful to
have the opportunity and take advantage to the fullest for self-betterment. “Do not be anxious
about anything, but in everything by prayer and supplication with thanksgiving, let your request
be made known to God” (English Standard Version Bible, 2001, Philippians 4:6).
Question 13.6: A problem facing shoe store managers is that many shoes eventually must be
sold at markdown prices. This prompts a manufacturer to conduct a mail survey of shoe
store managers in which we ask, “What methods have you found most successful for
reducing the problem of high markdowns?” We are interested in extracting as much
information as possible from these answers to better understand the full range of strategies
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that store managers use. Establish what you think are category sets to code 500 responses
similar to the 14 given here. Try to develop an integrated set of categories that reflects your
theory of markdown management. After developing the set, use it to code the 14 responses.
Manufacturers want to understand why stores must mark shoes down because it directly
affects them due to their products not being purchased as expected. The current fluctuations in
the market have retailers overwhelmed on the proper procedure on marking down merchandise
prices without taking a significant loss. “Your lamp is a lamp to my feet and a light to my path
(English Standard Version Bible, 2001, Psalm 119:105). In the United States, markdowns cost
retailers $300 billion or 12 percent of total in 2018 (Nicasio, 2019). Surveying can provide
clarity on the best strategy for markdowns. To develop successful category sets to code 500
responses, the categories must be appropriate to the research problem. Schindler (2019) stated
content analysis uses a systematic objective to code message characteristics so researchers can
look for patterns and draw inferences (p. 327). The following category sets will be able to code
the 500 responses for the markdown: Sales Incentives, Purchase, Training, Operations, and
Other. The ““oOther”” category should always be an option to classify the questions not covered
by the other category set.
Have not found the answer. As long as we buy style shoes, we will have markdowns. We use
PMs on slow merchandise, but it does not eliminate markdowns. (PM stands for “push-
money”—special cash bonuses for selling a particular brand and style of shoe.)
Sales incentive. Push method is a sales incentive that assistings with slow-moving
merchandise. This motivates them to promote the particular shoe for cash bonuses. They utilize
this method with no guarantee of eliminating markdowns.
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Using PMs before too old. Also reducing price during season. Holding meetings with
salespeople indicating which shoes to push.
Sales incentive and tTraining. The managers attempting to motivate the sales crew to sell
the shoes before the shoe season runs out, causing the higher markdowns on products. Also,
holding meetings continuous meetings with the sales crew training them on which shoes havehas
to move.
By putting PMs on any slow-selling items and promoting same. More careful check of shoes
purchased.
Sales incentive and pPurchase. The sales incentive is push methods and promotions on
any slow-selling items. For purchase, the manager will evaluate which shoes are being purchased
to be sold in the store to have a higher chance of making sales.
Keep a close watch on your stock, and mark down when you have to— that is, rather than
wait, take a small markdown on a shoe that is not moving at the time.
Operation. Paying attention to the inventory and paying attention to the slow-moving
products and timing markdown can cause the store to take a smaller loss compared to having to
drop the price 50 percent. When managing inventories, the general rule of one-third of the
merchandise purchased will be bought at full price and markdown until sold (Hudson, 2019).
Using the PM method.
Sales incentive. The push method is there to get rid of slow-moving merchandise. This
method motivates the salesperson to promote athe particular shoe and receive cash bonuses.
Less advance buying—more dependence on in-stock shoes.
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Purchasing. The manager will not over purchase shoes not being sold and depending on
the current shoes in stock to bring in revenue. Taking the chance of advance buying might cause
a significant loss if it does not sell, and they have to be markdown.
Sales—catch bad guys before it’s too late and closeout.
Sales incentives. Placing a promotion on some merchandise before they are out of season
will assist with reducing markdown rates.
Buy as much good merchandise as you can at special prices to help make up some
markdowns.
Operations. Managers are aware of the risk of taking a loss on particular merchandise and
investing in staple merchandise at a discount guarantee purchases which will make up for the lost
when other products are marked down.
Reducing opening buys and depending on fill-in service.
Purchase and oOperations. Planning to purchase only what is needed can reduce the
chances of having to markdown prices. For the operation category by having a fraction of the
stock availability of customers' demand without any backorder or loss in sales.
Buy more frequently, better buying, PMs on slow-moving merchandise.
Purchase and sSale incentive. For the purchase category, the manage feels like making
better and frequent purchases can assist with reduction of markdowns, but when it is inevitable,
then the push method must be implemented as a sale incentive.
Careful buying at lowest prices. Cash on the buying line. Buying closeouts, FDs, overstock,
“cancellations.” (FD stands for “factory- discontinued” style.)
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Purchase. The manager is being observant of items being purchased at a low price
because there is a good reason why they are trying to get rid of it and place the burden
somewhere else.
By buying less “changeable” shoes. Buy only what you need, watch sizes, don’t go overboard
on new fads.
Purchase. The manager monitors what is currently being sold and not going overboard
with the trends and purchasing only what is needed.
Buying more staple merchandise. Buying more from fewer lines. Sticking with better
nationally advertised merchandise.
Operations and pPurchase. The manager researching what products are in demand and
sticking with the ones nationally advertised can reduce slow-moving merchandise. For the
purchase category, instead of trying to buy from everywhere, get a few staple lines and stick with
it to avoid being forced to markdown.
No successful method with the current style situation. Manufacturers are experimenting, the
retailer takes the markdowns—cuts gross profit by about 3 percent—keep your stock at lowest
level without losing sales.
Operation. This is an operation category due to it being a plan to keep prices as low as
possible without losing sales.
Overall, markdowns are evitable, but the best practice is the goal of minimizing the loss.
Finding what is best for a certain area and purchasing staple items can assist with reducing high
markdowns. “I can do all things through him who strengthens me” (English Standard Version
Bible, 2001, Philippians 4:13).
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Question 13.8: A local health agency is experimenting with two appeal letters, A and B,
with which to raise funds. It sends out 400 of the A appeal and 400 of the B appeal (each
subsample is divided equally among working-class and middle-class neighborhoods). The
solicitation secures the results shown in the following table.
Appeal A Appeal B
Middle Class % Working Class % Middle Class % Working Class %
Contribution 20 40 15 30
No contribution 80 60 85 70
Which appeal is the best?
After comparing the data from the solicitation results for contributions from Appeal A
and Appeal B, the best appeal approach in this study is Appeal A. When examining the results for
both working and middle-class neighborhoods, Appeal A had a higher contribution rate of 15
percent than Appeal B. Appeal A was able to receive 60 percent donations, a total of 240
donations from the 400 letters sent out. On the other hand, Appeal B was only able to receive 45
percent totaling 180 donations leaving them 60 people less than Appeal A. Overall, Appeal A is
the best with the success rate of 60 percent dominating with 15 percent higher than Appeal B.
Which class responded better to which letter?
From the 800 letters sent out to both the working-class and middle-class neighborhoods,
the results reflect the working class responded better than the middle class. In both appeals A and
B, the working-class doubled the amount of the middle class. In Appeal A, there was 20 percent
donation from the middle-class and 40 percent from the working-class. In Appeal B, there was
15 percent contribution from the middle class and 30 percent from the working class. Overall,
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the working had a higher contribution rate on both appeal letters, but Appeal A was the higher
percentage for the working class.
Is appeal or social class a more powerful independent variable?
Both are considered to be an equally important independent variable. The financial ability
to donate as well as the content in the letters both play a major role in whether these social
classesclass will donate to the local health agency. Social class is defined as a hierarchy in
society based on income, wealth, power, culture, behavior, heritage, and prestige (Bird &
Newport, 2017). Bird and Newport (2017) noted 43 percent of Americans are considered middle
class and 30 percent working class. The middle class is defined on the economic resources
(income, wealth and freedom of poverty), educational achievements and occupation status, or
culture attitudes, self-perception, and mindset (Reeves et al., 2018). On the other hand, the
working class is defined as the same, but are individuals in the labor force who does not have a
bachelor’s degree, hold little to no authority at work, and make around fifteen dollars an hour
(Draut, 2018). Understanding the difference of culture and empathy between both plays a
significant part in whether they are willing to donate.
In relations to one’s social class:
Individuals with low trait ratings of social power havehas a construct reflecting a person’s
capacity to influence the outcomes of others has reported greater investment in a
relationship with a stranger and reported higher levels of compassion in response to the
stranger’s disclosure of suffering. (Piff etel al., 2010, p. 772)
“Whoever is generous to the poor lends the Lord, and he will repay him for his deed” (English
Standard Version Bible, 2001, Proverbs 19:17). The working-class tendtends to be more
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compassionate because they understand and trust the Lord will provide for a cheerful giver.
“Bear one another’s burden, and so fulfill the law of Christ” (English Standard Version Bible,
2001, Galatians 6:2).
Researchers understand how the content within the letter can affect whether someone will
be willing to give or not and why there were two different letters sent. The content of the letters
sent can play a significantmajor part not only to the groups of the social class it was sent to but
the individualsindividuals’ personal perception. People will give when there is compassion and
relation, if the letter received by either class was basic and just asking for a donation then those
might be the people who will not donate. Still, if, but if they received the letter with an
explanation of the intended usage for the funds then they probably would have donated and had a
higher percentage of contribution. Overall, both variables can be deemed equally important when
referring to convincing someone to donate.
Question 14.7: You conduct a survey of a sample of 25 members of this year’s graduating
business students and find that the average GPA is 3.2. the standard deviation of the
sample is 0.4. over the last 10 years, the average GPA has been 3.0. is the GPA of this year’s
students significantly different from the long-run average? Aat what alpha level would it be
significant?
“Commit to the Lord whatever you do, and he will establish your plans” (Proverbs 16:3,
New International Version). This verse is important to this prompt because no matter what we
must always trust that the Lord will guide us and instruct us the way. Hypothesis testing is an
attempt to show a relationship between two variables (Schindler, 2019). Given this prompt
measuring a null hypothesis will need to take place. P Plenty of research has been done
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discussing null hypothesis, its advantages, and disadvantages. Kruger (2001)
researchedconducted research on the topic and significance testing. His findings could have a
whole research paper written on. Most importantly the definition of null hypothesis is no true
difference between variables (Mallat, 2017). Another important definition to note in to complete
this prompt is alternative hypothesis. Mallat, (2017) defines an alternative hypothesis as that
there is in fact a difference between two variables. Glancing at this problem one can assume
different things and attempt to prove various hypotheseshypothesis. As with most research there
are various ways to come to a correct conclusion. There are plenty different methods that can be
used to draw a conclusion before getting into those we will use the statistical testing procedure
by Schindler (2019) to outline how to answer this question: “State the null hypothesis, Pick
statistical test, Choose wanted level of significance, Figure calculated value difference, Find the
critical value, Interpret the test” (p. XX)
The null hypothesis for this prompt is that there is no difference between GPA of the
students in the past ten10 years.
H0=3.0
The alternative hypothesis being that the GPA has changed over the years.
H (does not) = 3.0
Now moving on to choosing the statistical test. As previously mentioned, there are a
range of tests to choose from. One could use nonparametric tests, chi-squarechi square tests, and
parametric tests to name a few (Schindler, 2019). The best choice given the scenario may be to
use parametric tests. There are two versions of parametric tests t-test or Z-test. Schindler (2019)
mentions if the sample size is less than 30, t-test is the better choice.
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The goal of the research is to determine if there is a difference when comparing students
with 3.2 GPA to students with 3.0 GPA. The standard deviation is said to be .4. After finding
that the desired level of significance needs to be found, which is .05
Here is the equation then formed:
3.2−3.0
.4/√25 =0.2
.08 =2.5
Now that we found that the calculated value is 2.5, next we must find the critical value,
by looking at the Exhibit D-2.
Deferred freedom (d.f.) = 25-1 = 24
Using 24, the degree of freedom and the Exhibit D-2 creates a critical value of 1.711.
Reviewing the calculated value that isat 2.5 and the critical value is 1.711, the null hypothesis is
rejected because the calculated value is greater than the critical value. This research shows that
GPA is different from current year students and the previous 10-year average.
The next question to determine is at what alpha level would the hypothesis be significant.
Anytime the levels are at or above a critical value of 2.492 and an alpha level of .0197 would it
be significant? Anytime these numbers are below it would not be deemed significant. “But
examine everything carefully; hold fast to that which is good” (1 Thessalonians 5:21, New
International Version). It is very important to take a look at everything multiple times and to
gathergathering the correct information as this verse states, relating to the prompt.
Question 14.9: You contact a random sample of 36 graduates of Western University and
learn that their starting salaries averaged $28,000 last year. You then contact a random
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sample of 40 graduates from Eastern University and find that their average starting salary
was $28,800. In each case, the standard deviation of the sample was $1,000. What
assumptions are necessary for this test?
“I meditate on your precepts and consider your ways. I delight in your decrees; I will not
neglect your word” (Psalm 119:15-16, New International Version). When doing research or
business it is always important to have a positive attitude and outlook no matter the
circumstances. Similar to question 14.7, this problem needs a null hypothesis tested. Also
similar to 14.7 an alternative hypothesis will be necessary. The null hypothesis in this case being
that there is not a difference between salaries earned of those who graduated from Eastern
University and Western University. The alternative hypothesis is that there is indeed a difference
between the two salaries earned from both schools. Again, the statistical testing procedure will
be necessary concerning this problem. Schindler (2019), recognizes it in the following order:
“State the null hypothesis, Pick statistical test, What level of significance?, What is the calculated
value?, What is the critical value?, What is the result and or outcome of the test?, Interpret the
data” (p. XX)
Based onoff of the information provided Eastern University graduates made 800 dollars
more than the other school mentioned in this study, Western University. “Fools find no pleasure
in understanding but delight in airing their own opinions (Proverbs 18:2, New International
Version). Research is done to prove or disprove something. The foundation of hypothesis
testing is both deductive and inductive reasoning (Schindler, 2019). Deductive reasoning being
reasoning that is due to a logical conclusion, while inductive reasoning comes to a conclusion by
actual facts and or evidence (Schindler, 2019). A hypothesis can always be received (accepted)
or rejected in research studies. As stated previously the null hypothesis being that there is not a
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difference between average salaries received by graduates of both schools is represented like:
H0= there is no difference between average salaries.
The alternativeAlternative hypothesis is as follows: Eastern University graduates obtained more
money than students who graduated from Western University.
Now that the hypothesis is chosen, the statistical test will follow. T-test seems to be the
best choice for this given situation as it is identical to question 14.7. The t-test is a test used to
show the statistical significance of a sample population.
The significanceSignificance level is next in the statistical procedure. The level of
significance is defined as the chances the null hypothesis will be rejected (Schindler, 2019). For
this problem the level of significance is .05.
Following the level of significance is the calculated value, which can be found using this
formula:
Type equation here .
After completing the t-test, the calculated value was found to be 3.436.
Next on the statistical testing procedure is finding the critical value.
Degree of freedom (d.f.) = 74 Alpha= .05
With this information the critical value is found to be 1.66.
Like the previous problem, 14.7, the calculated value which is 3.436 is greater than the
critical value which is 1.66. Therefore, the null hypothesis is rejected. Since the null hypothesis
is rejected it proves graduates of Eastern University earned a greater salary than those who
graduated from Western University.
What assumptions are necessary for this test?
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An assumption needed for this test is that salaries are distributed normally. Assumptions
must always be considered and addressed in statistical research (Kim et al., 2009). In other
words, it is noted that assumptions like homoscedasticity, independence, violations, and
miscellany are to be considered when conducting a t-test (Jupiter, 2017).
Question 14.11: You do a survey of business students and liberal arts school students to find
out how many times a week they read a daily newspaper. In each group, you interview 100
students. Test the hypothesis that there is no significant difference between these two
samples.
The goal of survey research is to collect data, compare similarities, differences, and it is
very beneficial to use when researching diverse, large populations (Schindler, 2019). This would
be perfect for this scenario as it was the choice of research to conduct to gain a further
understanding on who reads the newspaper in a group of 100 students. “And whatever you do,
whether in word or deed, do it all in the name of the Lord Jesus, giving thanks to God the Father
through him” (Colossians 3:17, New International Version). Again, answering this question
would need the help of the statistical procedure provided by Schindler, (2019):
Null hypothesis
Statistical test
Significance level
Calculated value
Critical value
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Interpret data and results
The null hypothesis (H0) is that there is not a significant difference between the two
given samples. Making the alternative hypothesis (H1) that there is in fact a difference between
the two samples providedgiven.
Again, with the use of t-test we will be able to determine the answer to the hypothesis.
Next, the level of significance needs to be determined which is .05.
Then the calculated value follows:
The calculated value comes out to 4.378
The degree of freedom (d.f.) = 198 alpha level of significance .05
Therefore, the critical value is 1.96
Again, the calculated value comescome out to 4.378 which is greater than 1.96 which is the
critical value. Therefore, the null hypothesis is rejected.
“The simple believe anything, but the prudent give thought to their steps” (Proverbs
14:15, New International Version). These results show there is a difference in reading the
newspaper and students who are in business school compared to those who are in liberal arts
school. IThe information nformation gained fromorm these types of studies and research can be
very beneficial if interpreted correctly. The use of this key information can go a long way in
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terms of advancing a business and taking things to the next level. These results can determine
things like how many newspapers should be printed, affecting the amount of money spent by
those printing the newspapers. Another lesson learned from this study is the opportunity for the
publisher to can learn know where to make these newspapers availableto ensure availability so
that none or little go to wasteto lower the chance of papers being wasted. If it is a free
newspaper it would be important to know things like this so that editors could potentially make
money off of their product. For a newspaper that is already profiting the results of this study
could tell the publisher more about their audience and who to gravitate their stories towards.
Knowing Acknowledging this can help the publisher attract a bigger audience and capitalize on
an opportunity. Analyzing data is very important and crucial to all things business. Small and
medium businesses should learn how to manage data and put it to use (Russom, 2011).
Another take on the research in this field could be researching not only who reads the
newspaper but how students access their news and or newspaper. With the growth of
technology every industry has been affected tremendously. Based off the numbers, if growing
the newspaper is a goal maybe focusing on digital news to reach the business schools and
everyone else should be of interest, moving forward. In an ever-advancing society like ours it is
important to stay ahead of the curve and constantly research to gain insight on ways to improve
and grow.
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Question 15.2: Describe the relationship between the two variables in the four plots.
The four plots above are representations of four different sets of variables utilizing
scatterplots. Scatterplots are an effective visual tool used to analyze data. Micallef et al. (2017)
state, “a scatterplot shows the relationship between two variables x, y by plotting a marker for
each data point (xi, yi) in a 2D Cartesian coordinate system spanned by x and y” (p. 1590).
According to Schindler (2019), scatterplots “provide a means for visual inspection of data that a
list of values for two variables cannot. Both the direction and the shape of a relationship are
conveyed in a plot” (p. 398). A graphic visualization such as a scatterplot is a way to take data
and open the eyes of those that need to see it much like God does for us. “Open thou mine eyes,
that I may behold wondrous things out of thy law” (King James Bible, 1769/2017, James 1:19).
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For plot (a), there is no correlation between the two variables. The shape of the plots does
not form a linear progression in any way. The variables in plot (b) have a positive association
because they go diagonally from left to right in an upward trend. In addition, plot (b) shows a
moderate relationship due to the somewhat closer grouping of variables with a linear
progression. The variables in plot (c) have a curvilinear relationship, meaning that the
relationship increases in a positive association until a specific point in time at which it begins to
have a negative association. Nevertheless, this is still a linear relationship. Plot c has a stronger
relationship than plot b as the variables appear to be closer together. The variables in plot d have
a negative association based on the downward trend from left to right. Plot d also has a stronger
linear relationship than the other plots which is shown by the closest grouping of the variables.
“Pearson’s r r measures relationships in variables that are linearly related” (Schindler,
2019, p. 399). If these plots are reviewed using Pearson’s r then plot a would have an r = 0 due
to having no correlation. Plot b would show an approximate r = +0.50 and plot d would show an
approximate r = -0.90. Plot c cannot be measured utilizing Pearson’s r because of its curvilinear
relationship. Rensink (2017) discusses the potential of graphical representations to give effective
representations of data and the use of scatterplots and Pearson’s r as a good beginning approach
to data visualization. The key thought is, that it is a beginning point. Scatterplots and r
coefficients are a way to view data for a quick assessment but there may be additional variables
that are not known that to affect the outcome of the variables. “Even when a coefficient is
statistically significant, it must be practically meaningful” (Schindler, 2019, p. 405). Bringing
meaning to the data is an important aspect of data analysis and visualization. To bring meaning
into to our lives, onewe must remember that they we are chosen by God and therefore, theirour
lives are meaningful and filled with purpose they we just must choose to show this meaning to
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the world through our light. “Let your light so shine before men, that they may see your good
works, and glorify your Father which is in heaven” (King James Bible, 1769/2017, Matthew
5:16).
Question 15.5: A research team conducted a study of soft-drink preferences among
residents in a test market prior to an advertising campaign for a new cola product. Of the
participants, 130 are teenagers and 130 are adults. The researchers secured the following
results:
Cola Noncola
Teenagers 50 80
Adults 90 40
Calculate an appropriate measure of association, and decide how to present the results.
How might this information affect the advertising strategy?
When attempting to make decisions, one must “listen to advice and accept instruction,
that you may gain wisdom in the future” (English Standard Version Bible, 2001, Proverbs 19:20).
This applies in a multitude of situations, including this scenario involving advertising strategies.
The first step in this decision process is to produce a hypothesis and null hypothesis. The
hypothesis for this is the age of a person and their preference for cola isare not independent. The
null hypothesis is the age of a person and their preference for cola isare independent. The next
step in determining the measure of association for the provided data is to determine the type of
data. For the provided question, nominal is the most appropriate choice for the type of data.
“Nominal measures are used to assess the strength of relationships in cross-classification tables”
(Schindler, 2019, p. 418). For this nominal data, the most appropriate measure to use is the
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Pearson chi-square-based method using phi because the data is displayed in a 2x2 grid
(Schindler, 2019). “The chi-square test, a frequency data-baseddata based test of significance is
basically used as a test of similarity/dissimilarity between theory and experiment by testing
significance of difference between the observed (experimental) and expected (theoretical
/hypothetical) frequencies” (Kumar, 2015, p. 54). “When the variables of interest are
categorical, they may be represented by an R × C contingency table, and Pearson’s χ2 statistic is
widely applied to test the independence of the row and column variables that are jointly
multinomial” (Shih & Fay, 2017, p. 822). The first step is to calculate the column and row totals
as seen in Table 1.
Table 1
Column and Row Totals
Cola Noncola Row Totals
Teenagers 50 80 130
Adults 90 40 130
Column Totals 140 120 260 (Grand Total)
Next, the Chi-Square Pearson value and significance is calculated. For this example, the
Pearson Chi-Square value is 24.7619. The significance value is less than the 0.5 testing level;
therefore, the null hypothesis stating there is no relationship between age and cola preference is
ruled invalid. Now the Phi value is calculated using the formula provided in Schindler (2019, p.
419):
∅=
√
x2
N
. This results in a Phi value of 0.30860. This demonstrates a moderate
relationship between age groups and cola preference. T The best method for presenting this data
is in a tabled ranks format for age classification and cola preference (Schindler, 2019).
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The advertising strategy for this company could be affected by this survey result as the
results demonstrate teenagers may not be the target audience for this new product. Mogaji and
Danbury (2017) conducted a study in the United Kingdom on how banks use advertisements as
emotional appeals to their consumers. The study found these banks were not effectively reaching
their consumers based solely off this appeal, but also needed to “present distinct values about
their services to the target audience, endeavorendeavour to build relationships with existing
customers and reward loyalty” (para. 4). This concept should apply in the situation with the cola
company. The company’s advertising strategy should be aimed towards adults and demonstrate
not only the immediate benefits of their product to the consumer, but also the longlonger term
benefits of the company in the community. This could include advertising any contributions the
company makes to the local economy or public services, such as school programs or social
welfare programs. Additionally, the company should realize that while the teenagers were not
the largest demographic of consumersconsumer, they should not alienate this group, especially as
this group will quickly age and become a part of the larger group. This should also signal to the
company there may be a coming change in consumer preference as teenagers become adults.
The company should conduct studies on what the teenagers who are not drinking cola are
drinking. This could present an opportunity to develop a new product to meet a new demand.
“Walk in wisdom toward outsiders, making the best use of the time” (English Standard Version
Bible, 2001, Colossians 4:5).
Question 16.6: Which type of graph would you recommend to show each of the following?
Why?
Graphs are a visual representation of data and assist in telling the story of the data
easilyin an easy way. “In order for the audience to understand how the researcher reached his or
GROUP 2 FORUM 2 24
her conclusions and recommendations, it is important that graphs (1) give accurate visual
impressions of information (data clarity) and (2) be easily interpreted” (Schindler, 2019, p. 450).
It is important to open the eyes of your audience. “Open thou mine eyes, that I may behold
wondrous things out of thy law” (King James Bible, 1769/2017, Psalms 199:18).
a. A comparison of changes in average annual per capita income for the United States
and Japan from 2000 to 2018.
The graph that would bestbest representing a comparison of changes for both companies
over the time period would be a line graph. “A line graph uses lines of different colors or patterns
to connect data points; these are used primarily to display time series drawn from cross-tabulated
data” (Schindler, 2019, p. 451). The horizontal axis will have the time period by years. The
vertical axis will have the average annual per capita income amounts. Two different colored lines
would be used, one for each country.
This line graph will allow the large time frame to be betterto better be expressed rather
than having a bar graph which would incorporate too many bars and be too busy. The key to
usefulgood graphical visualizations is bringing light to the data that needings to be seen and
making it shine forth. “No man, when he hath lighted a candle, putteth it in a secret place, neither
under a bushel, but on a candlestick, that they which come in may see the light” (King James
Bible, 1769/2017, Luke 11:33).
b. The percentage composition of average family expenditure patterns, by the major
types of expenditures, for families whose heads are under age 35 compared with families
whose heads are 55 or older.
The graph that would best representing the percentage comparison would be a multiple
pie graph. “A pie graph represents data categories within a single variable as slices of a circle to
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represent 100 percent of a frequency distribution of a single variable” (Schindler, 2019, p. 451).
The total pie would be the total family expenditure ofas the 100%. Each slice of the pie would
represent a major type of expenditure. By utilizing multiple pie graphs, one pie can be for the
under age 35 group while the second pie can be for the 55 or older age range.
Pie graphs are often used for proportional or percentage information but have other uses
as well. Gillan (2000) states, “people also use pie graphs to make comparisons -- by judging
which of several segments is larger, by estimating the ratio of two segments, or by estimating the
difference between two segments” (p. 3-349).
c.A comparison of the changes in charitable giving between December 31, 2007 and
December 31, 2017.
For comparison of changes in charitable giving, a column bar graph should be utilized.
The horizontal axis will show the time frame by year. The vertical axis will show the dollar
amount. This will allow a straightforwardan easy visual representation of the data by seeing the
height of the bar graphs along the continuum of time.
Bar graphs are one of the most widely utilized and easily identifiable graphs. Peebles and
Ali (2015) stated, “because data points are represented by individual separate bars, they are more
likely to be encoded in terms of their height, interpreted as representing distinct values on a
nominal scale, and are therefore better for comparing and evaluating specific quantities” (p. 3).
They stated e that line graphs are utilized more often but bar graphs appeal and are understood
by a wider audience range. This reiterates the point that determining how to display data should
always consider the desired audience effect and an audience analysis whether formal or informal
should always be completed.
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Question 16.9: Your class team in research methods has completed a project for a financial
institution on branch location effectiveness to determine which, if any, branches might be
closed. What information would you collect for your audience analysis as you plan your
report?
In preparing to present a business report, the team must consider three planning choices:
“what information findings, insights, and recommendations should be presented to achieve the
audience effect and in what order; how should these be presented; and how, when, and where the
report will be delivered” (Schindler, 2019, p. 440). A very important step in this process is to
conduct an audience analysis. “Let your speech always be gracious, seasoned with salt, so that
you may know how you ought to answer each person” (English Standard Version Bible, 2001,
Colossians 4:6). De Stadler and van der Land (2007) explored this audience analysis from a
participatory standpoint aiming to discover both what content the audience needs to understand
the message and in what form they would prefer it to be presented. “It allows us to understand
who they are, what values they have, what their attitudes and beliefs regarding a certain issue
might be, how they normally act regarding this particular issue, what their sense of self-efficacy
is, and more” (p. 65). Additionally, Dunn (2015) explored this concept from a view of turning an
audience member from awareness of a topic to understanding. While the focus of Dunn’s topic
was on safety measures in an industrial setting, the implications of understanding an audience are
applicable across all spectrums of business. Dunn emphasized the presenter must not only have
an in-depth understanding of the information they are presenting, but also of the audience they
are presenting too. Dunn presents several factors that can affecting an audience member’s
understanding of the material being presented, such as education level or technical background
and the attitude of the member to the particular subject. Additionally, Dunn emphasized the need
GROUP 2 FORUM 2 27
for the audience member to be allowed to ask questions regarding the material, not only during
the presentation, but also later when speaking with their supervisor.
For the provided scenario, the team members must first understand who the audience is.
Is the audience for this report the CEO of the institution along with members of the board, or is
the audience a group of branch managers attending a meeting? For these different scenarios, or
any otherothers possible, the team members must choose between creating a management report
or a technical report. The management report is typically less technical and more broadbroader,
addressing managers at their level of the company. A technical report would be more effective if
the audience werewas a group of financial analysts for the bank who would need, and
understand, the technical aspects of the specific financial information. In addition to choosing
between report types, the team members must also decidechoose between delivering an oral or
written report, or a combination of the two. Again, this relies entirelycompletely on the needs
and wants of the audience; therefore, the team members should seek this guidance directly from
the originating person who tasked this project. In this specific example, the team members
would also want to know if their audience includes members whose branches are to closed,
especially if this presentation is going to be their first time learning this. This situation could
present unique obstacles for the team if they are presenting this information to an emotionally-
charged audience. Lastly, the team members should seek to understand what the audience seeks
to gain from attending the presentation. Is this presentation a brief overview of the status of the
institution for members of management who may already know a lot of the information, or is this
for new employees who do not have the possessed knowledge? “So with yourselves, if with
your tongue you utter speech that is not intelligible, how will anyone know what is said? For
you will be speaking into the air” (English Standard Version Bible, 2001, 1 Corinthians 14:9).
GROUP 2 FORUM 2 28
GROUP 2 FORUM 2 29
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