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Concept explainers
Fuentes Salty Snacks, Inc.
Six months ago Fuentes Salty Snacks, Inc. added a new flavor to its line of potato chips. The new flavor, candied bacon, was introduced through a nationwide rollout supported by an extensive promotional campaign. Fuentes' management is convinced that quick penetration into grocery stores is a key to the successful introduction of a new salty snack product, and management wants to determine whether availability of Fuentes' Candied Bacon Potato Chips is consistent in grocery stores across regions of the U.S. Fuentes Marketing department has selected random samples of 40 grocery stores in each of its eight U. S. sales regions:
• New England (Connecticut, Maine, Massachusetts, New Hampshire, Rhode Island, and Vermont)
• Mid-Atlantic (New Jersey, New York, and Pennsylvania)
• Midwest (Illinois, Indiana, Michigan, Ohio, and Wisconsin)
• Great Plains (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota, Oklahoma, and South Dakota)
• South Atlantic (Delaware, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia, Washington DC, and West Virginia)
• Deep South (Alabama, Arkansas, Kentucky, Louisiana, Mississippi, Tennessee, and Texas)
• Mountain (Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming)
• Pacific (Alaska, California, Hawaii, Oregon, and Washington)
The stores in each sample were then contacted, and the manager of each store was asked whether the store currently carries Fuentes' Candied Bacon Potato Chips. The complete data set is available in the DATAfile named FuentesChips.
Fuentes' senior management now wants to these data to assess whether penetration of Fuentes' Candied Bacon Potato Chips in grocery stores is consistent across its eight U.S. sales regions. If of Fuentes' Candied Bacon Potato Chips in grocery stores differs across its U.S. sales regions, Fuentes' management would also like to identify sales regions in
which penetration of Fuentes' Candied Bacon Potato Chips is lower or higher than expected.
Managerial Report
Prepare a managerial report that addresses the following issues.
2. Use the data from Fuentes' study to test the hypothesis that the proportion of grocery stores that currently carries Fuentes' Candied Bacon Potato Chips is equal across its eight U.S. sales regions. Use
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Chapter 12 Solutions
Essentials of Modern Business Statistics with Microsoft Office Excel (Book Only)
- Examine the Variables: Carefully review and note the names of all variables in the dataset. Examples of these variables include: Mileage (mpg) Number of Cylinders (cyl) Displacement (disp) Horsepower (hp) Research: Google to understand these variables. Statistical Analysis: Select mpg variable, and perform the following statistical tests. Once you are done with these tests using mpg variable, repeat the same with hp Mean Median First Quartile (Q1) Second Quartile (Q2) Third Quartile (Q3) Fourth Quartile (Q4) 10th Percentile 70th Percentile Skewness Kurtosis Document Your Results: In RStudio: Before running each statistical test, provide a heading in the format shown at the bottom. “# Mean of mileage – Your name’s command” In Microsoft Word: Once you've completed all tests, take a screenshot of your results in RStudio and paste it into a Microsoft Word document. Make sure that snapshots are very clear. You will need multiple snapshots. Also transfer these results to the…arrow_forward2 (VaR and ES) Suppose X1 are independent. Prove that ~ Unif[-0.5, 0.5] and X2 VaRa (X1X2) < VaRa(X1) + VaRa (X2). ~ Unif[-0.5, 0.5]arrow_forward8 (Correlation and Diversification) Assume we have two stocks, A and B, show that a particular combination of the two stocks produce a risk-free portfolio when the correlation between the return of A and B is -1.arrow_forward
- 9 (Portfolio allocation) Suppose R₁ and R2 are returns of 2 assets and with expected return and variance respectively r₁ and 72 and variance-covariance σ2, 0%½ and σ12. Find −∞ ≤ w ≤ ∞ such that the portfolio wR₁ + (1 - w) R₂ has the smallest risk.arrow_forward7 (Multivariate random variable) Suppose X, €1, €2, €3 are IID N(0, 1) and Y2 Y₁ = 0.2 0.8X + €1, Y₂ = 0.3 +0.7X+ €2, Y3 = 0.2 + 0.9X + €3. = (In models like this, X is called the common factors of Y₁, Y₂, Y3.) Y = (Y1, Y2, Y3). (a) Find E(Y) and cov(Y). (b) What can you observe from cov(Y). Writearrow_forward1 (VaR and ES) Suppose X ~ f(x) with 1+x, if 0> x > −1 f(x) = 1−x if 1 x > 0 Find VaRo.05 (X) and ES0.05 (X).arrow_forward
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- Glencoe Algebra 1, Student Edition, 9780079039897...AlgebraISBN:9780079039897Author:CarterPublisher:McGraw Hill
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