## Question 760:

. You are a researcher who 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. You obtained the following data:

Cola NonCola

Teenagers 50 80

a) State a testable hypothesis that you had formulated at the outset of the study. What is its competing hypothesis? (2 points)

b) What is the appropriate measure of association and why? (1 points)

c) Calculate the appropriate measure of association. (2 points)

d) What is the degree of freedom? (1point)

e) State the results of your calculations and explain them in terms of your hypothesis? (2 points)

f) How might this information affect the advertising campaign? (2 points)

2. You stumbled on a data set on the relationship between advertising dollars and corporate revenue of the small corporation that an individual (Mr. Smith or Mrs. Jones, make your choice) manages for your family. This information was buried! As a candidate for the MBA degree you are anxious to put your analytical abilities to work and set out to analyze the data.

Advertising dollars (in thousands) Revenue (in thousands)
12 50
13 54
10 58
9 47
20 70
7 20
4 15
22 40
15 35
23 27

a. Formulate a testable hypothesis, and state its alternative. (2 points)

b. What is the dependent variable and what is the independent variable? (1 point)

b. Scatter plot the relationship. Is it linear? (1 point)

c. What is a parametric/nonparametric test and when is each one of the two a more appropriate test? (3 points)

e. What is the difference between a t-test and a z-test? (3 points)

3. Suppose you want to estimate the monthly household expense in Accra Metropolis so that your estimate will be within + or – 5 Cedis of the true population value.

a) Which tailed-test will you use? (1 point).

b) Determine a z-value with 95% level confidence level using the appropriate answer to (a) above (1 point).

c) What should be the sample size if 95% confidence level is desired? (3 points)

e) On the basis of data on 150 applicants who responded to an ad to fill vacancies you wish to test the hypothesis 100 applicants’ categorized as accepted or rejected is not gender related. Design and state your hypothesis (5 points).