Assignment Objectives

Explain the applications and limitations of statistical hypothesis testing as applied to business situations.

Determine appropriate sampling methodologies for business settings and situations.

Scenario

WidgeCorp became the market leader in snack foods after acquiring a rival company, Company W. Their management style and business decision-making differed. Employees at WidgeCorp collected relevant data and through statistical analysis used this information to draw conclusions and make appropriate recommendations. Company W tended to rely on the experience and judgment of its managers. For the time being, both companies are being managed separately, but within the next twelve months they will merge all management, processes, and accounting. You work for Company W and are a little nervous about this new way of working, but realize that you need to be able to present issues and recommendations with statistical verification to the WidgeCorp executives. You will also introduce and employ statistical analysis to the senior management of Company W's various departments such as Marketing, Sales, and Production. Part of your job will be to educate Company W as well.

Assignment Details

Assignment Description

Weekly tasks or assignments (Individual or Group Projects) will be due by Monday, and late submissions will be assigned a late penalty in accordance with the late penalty policy found in the syllabus. NOTE: All submission posting times are based on midnight Central Time.

You are in a brainstorming session at WidgeCorp, where no idea is too outrageous. You are discussing penetration in the school lunch market. Ideas around school lunch subsidies, Internet subsidies, and Internet target marketing are being discussed. As the end of the meeting, the group asks you to prove or disprove some assumptions by looking at correlations.

First, acquaint yourself with the Internet subsidy issue by reading the article Closing the Digital Divide: Internet Subsidies in Public Schools by Austan D. Goolsbee and Jonathan Guryan.

Next, download the file Sample Data . Based on the findings as reported in this article, prepare a chart similar to the one in the downloaded file to indicate if the correlation between Variables A and B were found to be positive, negative, or minimal.

In your own words, explain what it means if the correlation of 2 variables is positive, negative, or minimal (close to 0), and give an example of each.

Price: $5.54

Solution: The downloadable solution consists of 2 pages, 354 words.
Deliverable: Word Document