A widely used method of monitoring customer loyalty is based on customers rating, on a 0-10scale, how likely they are to recommend a firm’s products or services to others? Customers whose ratings are 9 or 10 are called promoters; customers whose ratings are below 7 are called detractors. The net promoter score is the difference in the proportion of promoters and detractors (promotors - detractors ). Consider a company that has set two loyalty targets: (1) for most customers to be promotors , and (2) to have a net promoter score of at least .25. To test these targets, the company gathered ratings from a random sample of 293 customers, of which 159 were promoters and 65 were detractors. a.Compute and .pˆpromoter and pˆdetractor b.For α=.05, test the alternative hypothesis that the company meets its target for the proportion of its customer population who are promoters. c.For α=.05, test the alternative hypothesis that the company meets its net promoter target for its customer population; i.e., promoter-detractor >.25. *NOTE-show all steps and functions used in EXCEL
A widely used method of monitoring customer loyalty is based on customers rating, on a 0-10scale, how likely they are to recommend a firm’s products or services to others? Customers whose ratings are 9 or 10 are called promoters; customers whose ratings are below 7 are called detractors. The net promoter score is the difference in the proportion of promoters and detractors (promotors - detractors ). Consider a company that has set two loyalty targets: (1) for most customers to be promotors , and (2) to have a net promoter score of at least .25. To test these targets, the company gathered ratings from a random sample of 293 customers, of which 159 were promoters and 65 were detractors.
a.Compute and .pˆpromoter and pˆdetractor
b.For α=.05, test the alternative hypothesis that the company meets its target for the proportion of its customer population who are promoters.
c.For α=.05, test the alternative hypothesis that the company meets its net promoter target for its customer population; i.e., promoter-detractor >.25.
*NOTE-show all steps and
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