Inferential Statistics and Findings (Revision)

RUNNING HEADER: INFERENTIAL STATISTICS AND FINDINGS 2

Inferential Statistics and Findings

Quintin Graves

QNT/561

Derek Blythe

Inferential Statistics

This study shall apply ANOVA in testing the stated hypothesis. In particular, we shall apply one way ANOVA. The reason behind the use of this study is that it determine whether there are significant differences between the means of three or more independent (unrelated) groups. It can also be used as a special case for the t-test for two groups (Basso, 2009). In our study, there are two groups of interest. The first group uses Agevest and the second one is based Invest.Live as derived from the database. For the other case, we have customers who receive obsolete advice versus those who receive useful advice. Thus, a comparison of two independent groups in each case hence ANOVA becomes the appropriate statistical test.

Research Question

Which database should Trifold Investment Group use based on the relationship between the customers' profit and the turnaround time on the stock data with the different types of databases used?

Hypothesis Testing

We shall use the p-value as a rejection of the null hypothesis, where the null hypothesis will rejected for small values of the probability value (that is less than 0.05).

For the first hypothesis, the p-value is 0.08 greater than 0.05. We fail to reject the null hypothesis and conclude that, Ivest.Live provides a better return on investment than Agevest.

For the second hypothesis, the test returns a p-value of 0.61 larger than 0.05. Therefore, we fail to reject the null hypothesis and conclude that the advice given to the employees will result in lower profits.

Regression Coefficient

For the data-base used, the regression coefficient was 4.54, indicating that for every customer who uses the Invest. Live their profit increases by 4.54 units.

For the advice given, results show that for those customers who received useful advice their profit increases by 8.73 units.

Conclusion

From the results we can confidently say that Invest.Live is the best database to use at Trifold Investment Group. Secondly, a customer who receives useful advice has higher chances of making better profits.

Reference

Basso, D. (2009). Permutation Tests for Stochastic Ordering and ANOVA: Theory and Applications with R. New York: Springer Science & Business Media.