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. Company2018 Score2019 ScoreRite Aid7477Expedia7678J.C. Penney7879 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?

For 2018: Mean score, x1-=74 For 2019: Mean Score, x2-=77 Here the population standard deviation,…

Answered: Will improving customer service result…

MATLAB: An Introduction with Applications

6th Edition

ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

Chapter1: Starting With Matlab

Section: Chapter Questions

Problem 1P

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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?

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