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 75.7), 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 two previous years were obtained from the American Customer Satisfaction Index. Assume that the scores are based on a poll of 66 customers from each company. Because the polling has been done for several years, the standard deviation can be assumed to equal 7 points in each case. Company Year 1 Score Year 2 Score Rite Aid 74 75 76 78 Expedia J.C. Penney 77 81 a. For Rite Aid, is the increase in the satisfaction score from year 1 to year 2 statistically significant? Use a = .05 and null hypothesis is Ho : µ1 – 42 <0. What can you conclude? z value (to 2 decimals) p-value (to 4 decimals) The difference is statistically significant. b. Can you conclude that the year 2 score for Rite Aid is above the national average of 75.7? Use a = .05 and null hypothesis is Ho : µ< 75.7. Enter negative value as negative number. z value (to 2 decimals) p-value (to 4 decimals) We can conclude v that customer service has improved for Rite Aid. c. For Expedia, is the increase from year 1 to year 2 statistically significant? Use a = .05 and null hypothesis is Họ : µ1 – µ2 <0. z value (to 2 decimals) p-value (to 4 decimals) The difference is v statistically significant.

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Description: 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 ), studies show

MATLAB: An Introduction with Applications

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ISBN:9781119256830

Author:Amos Gilat

Publisher:Amos Gilat

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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 ), 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 two previous years were obtained from the American Customer Satisfaction Index. Assume that the scores are based on a poll of customers from each company. Because the polling has been done for several years, the standard deviation can be assumed to equal points in each case.

Company	Year 1 Score	Year 2 Score
Rite Aid	74	75
Expedia	76	78
J.C. Penney	77	81

d. When conducting a hypothesis test with the values given for the standard deviation, sample size, and a, how large must the increase from Year 1 to Year 2 be for it to be
statistically significant?
(to 2 decimals)
e. Use the result of part (d) to state whether the increase for J.C. Penney from year 1 to year 2 is statistically significant.
The increase is
v statistically significant.

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 75.7), 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 two previous years were obtained from the American Customer Satisfaction Index. Assume that the scores are based on a
poll of 66 customers from each company. Because the polling has been done for several years, the standard deviation can be assumed to equal 7 points in each case.
Company
Year 1 Score
Year 2 Score
Rite Aid
74
75
Expedia
76
78
J.C. Penney
77
81
a. For Rite Aid, is the increase in the satisfaction score from year 1 to year 2 statistically significant? Use a = .05 and null hypothesis is Họ : µ1 – µ2<0. What can you conclude?
z value
(to 2 decimals)
p-value
(to 4 decimals)
The difference is
v statistically significant.
b. Can you conclude that the year 2 score for Rite Aid is above the national average of 75.7? Use a =
.05 and null hypothesis is Ho : µ < 75.7. Enter negative value as negative
number.
z value
(to 2 decimals)
p-value
(to 4 decimals)
We
can conclude
v that customer service has improved for Rite Aid.
c. For Expedia, is the increase from year 1 to year 2 statistically significant? Use a = .05 and null hypothesis is Ho : µ1 - 42 <0.
z value
(to 2 decimals)
p-value
(to 4 decimals)
The difference is
statistically significant.

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