marketing homework

Marketing Research Homework Fall 2015

(100 points) Due Dec.1st ,2015

(For all statistical tests, the default significance level is 5%)

1. (10 points) The current advertising campaign for a major soft drink brand would be changed if less than 30 percent of the consumers like it. A random sample of 300 consumers was surveyed, and 84 respondents indicated that they liked the campaign. Should the campaign be changed based on your statistical test?

2. (20 points) A major department store chain is having an end- of- season sale on refrigerators. The number of refrigerators sold during this sale at a sample of 10 stores was:

80 110 0 40 70 80 100 50 80 30

Is there evidence that an average of more than 50 refrigerators per store were sold during this sale?

a. What is the sample mean? What is the standard deviation? (6 points)

b. What is the standard error and confidence interval (8 points)

c. What is the t statistics? (4 points) What is your conclusion? (2 points)

3. (20 points) McDonald’s is testing the impact of new menu on the store traffic of its franchise. It recorded the store traffic of 7 randomly selected stores across the nation. The store traffic is recorded during the first Wednesday before and after the new menu’s introduction. The same store is recorded twice with old menu and with new menu. The store traffics are recorded on each of the seven stores as follows: (Cell values are average number of visitor per hour between 9am -6pm)

Store ID	1	2	3	4	5	6	7
New menu (Tnew)	26	31	25	28	31	35	21
Old menu (Told)	24	29	23	25	28	32	23
Difference

Is there a significant difference in store traffic between the old menu and new menu conditions?

(1) Find the average difference of the store traffic between the two menus. (5 points)

(2) Find the standard deviation and standard error of the average difference. (5 points)

(3) What is the confidence interval of the difference? (5 points)

(4) Find the t value of the study. (3 points)

(5) Given the t critical value of 2.45, state the conclusion. (2 points)