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week_5inferential_statistics_and_findings.docx

Inferential Statistics and Findings

3

Inferential Statistics and Findings

Team A

University of Phoenix

Gibran Rezavi

QNT/561

June 22, 2015

SHORT TITLE OF PAPER

1

Running head: INFERENTIAL STATISTICS AND FINDINGS

1

Inferential Statistics and Findings

In the Week 2 Business Research Project Part 1 assignment, our Team has identified the Samuel Adams Brewery as the company of interest for research. The Samuel Adams Brewery began in a kitchen with an old family recipe and using the name of an American patriot. The long award winning history of the brewery is now a household name being sold not only in restaurants but in grocery stores and other retail locations. Our Team A has created a research question and described a scenario on how this will affect the Samuel Adams Brewery.

Research Question

Our research question is: Is there a correlation between the number of drunken driving accidents and the alcohol tax rate?

Null hypothesis: The number of drunken driving accidents and the alcohol tax rate are not correlated.

Alternative hypothesis: The number of drunken driving accidents and the alcohol tax rate are correlated.

We conduct a regression analysis in Excel (See Table 1 in Appendix). The results were significant, r(7)=.887, p< .05. The null hypothesis was rejected, and we conclude that there is a correlation between the number of drunken driving accidents and the alcohol tax rate.

Reference

Anderson, D.R., Sweeney, D.J., Williams, T.A., Camm, J.D., & Cochran, J.J. (2015). Essentials of statistics for business and economics. (7th ed.). Stamford, CT: Cengage Learning.

Tax Foundation. (2013, April). State Excise Rates on Spirits, 2007-2013. Retrieved June 07, 2015, from Tax Foundation: taxfoundation.org/article/state-excise-tax-rates-2007-2013

Virginia Highway Safety Office. (2014). 2014 Virginia Traffic Crash Facts. Retrieved from

https://www.dmv.virginia.gov/safety/crash_data/crash_facts/crash_facts_14.pdf

Appendix

1) Data on number of crashes and alcohol tax rates

Year

Number of crashes

Alcohol Tax rate ($/gallon)

2004

11504

 

2005

11495

 

2006

11736

14.02

2007

11215

14.54

2008

10294

14.54

2009

9366

20.13

2010

8217

20.13

2011

8411

20.13

2012

8776

20.91

2013

8047

20.56

2014

7666

19.19

2) Regression analysis

Table 1

SUMMARY OUTPUT

Regression Statistics

Multiple R

0.88674

R Square

0.786307

Adjusted R Square

0.75578

Standard Error

721.9054

Observations

9

ANOVA

 

df

SS

MS

F

Significance F

Regression

1

13423345

13423345

25.75729

0.001439

Residual

7

3648032

521147.4

Total

8

17071377

 

 

 

 

Coefficients

Standard Error

t Stat

P-value

Lower 95%

Upper 95%

Lower 95.0%

Upper 95.0%

Intercept

17329.2

1599.648

10.83314

1.26E-05

13546.64

21111.77

13546.64

21111.77

X Variable 1

-440.054

86.70731

-5.07516

0.001439

-645.084

-235.024

-645.084

-235.024