Will improving customer service result in higher stock prices for the companies providing the better service? “When a company’s satisfaction score has improved over the prior year’s results and is above the national average (currently 76.2), studies show its shares have a good chance of outperforming the broad stock market in the long run”. The following satisfaction scores of three companies for the 4th quarters of 2018 and 2019 were obtained from the American Customer Satisfaction Index. Assume that the scores are based on a poll of 70 customers from each company. Because the polling has been done for several years, the standard deviation can be assumed to equal 8 points in each case. Let 2018 be population 1.
Will improving customer service result in higher stock prices for the companies providing the better service? “When a company’s satisfaction score has improved over the prior year’s results and is above the national average (currently 76.2), studies show its shares have a good chance of outperforming the broad stock market in the long run”. The following satisfaction scores of three companies for the 4th quarters of 2018 and 2019 were obtained from the American Customer Satisfaction Index. Assume that the scores are based on a poll of 70 customers from each company. Because the polling has been done for several years, the standard deviation can be assumed to equal 8 points in each case. Let 2018 be population 1.
Holt Mcdougal Larson Pre-algebra: Student Edition 2012
1st Edition
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Chapter11: Data Analysis And Probability
Section: Chapter Questions
Problem 8CR
Related questions
Question
- Will improving customer service result in higher stock prices for the companies providing the better service? “When a company’s satisfaction score has improved over the prior year’s results and is above the national average (currently 76.2), studies show its shares have a good chance of outperforming the broad stock market in the long run”. The following satisfaction scores of three companies for the 4th quarters of 2018 and 2019 were obtained from the American Customer Satisfaction Index. Assume that the scores are based on a poll of 70 customers from each company. Because the polling has been done for several years, the standard deviation can be assumed to equal 8 points in each case. Let 2018 be population 1.
|
Company |
2018 Score |
2019 Score |
|
Rite Aid |
74 |
77 |
|
Expedia |
76 |
78 |
|
J.C. Penney |
78 |
79 |
2d. When conducting a hypothesis test with the values given for the standard deviation, sample size, and α, how large must the increase from 2018 to 2019 be for it to be statistically significant?
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Recommended textbooks for you
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL
Holt Mcdougal Larson Pre-algebra: Student Edition…
Algebra
ISBN:
9780547587776
Author:
HOLT MCDOUGAL
Publisher:
HOLT MCDOUGAL