CONFIDENCE INTERVALS AND HYPOTHESIS TESTING Assignment Overview You are a consultant who works for the Diligent Consulting Group. In this Case, you are engaged on a consulting basis by Loving Organic Foods. In order to get a better idea of what might have motivated customers buying habits you are asked to analyze a customer database. You realize the database is still incomplete, so you recontact these customers and collect additional information. The database now includes Annual Amount Spent on Organic Food, Age, Annual Income, Number of People in the Household, and Gender. Case Assignment Using Excel, generate descriptive statistics for these new variables: Annual Income, Number of People in the Household, and Gender. After you have reviewed the results generated above, write a report to your boss that briefly describes the results that you obtained. Please include the following in your report: 1. The descriptive statistics you generated. 2. Your interpretation of the descriptive statistics and any visual displays or other tools you used to analyze the data. 3. Your recommendation on how this new data might be used for marketing purposes. 4. Comment on whether this new recommendation is different than the one you provided in the Module 1 case. If so, explain why it is different. 5. Compare your statistical results from the new variables with those of the industry. 6. Lastly, your client argues that the amount of money spent on organic food is the same for females and males. You decide to test this at the ? = 0.10 level, using a two-sample hypothesis test. You dont know the population standard deviation, but you assume they are the same. Run this test in Excel and interpret the results. Can you support your clients claim? ***Data: Attached as an excel document Assignment Expectations You can again search the professional market research reports from the IBISWorld database to conduct the industry analysis. IBISWorld Overview (n.d.). IBISWorld, Inc., New York, NY. IBISWorld Forecast (n.d.). IBISWorld, Inc., New York, NY. IBISWorld Data and Sources (n.d.). IBISWorld, Inc., New York, NY. IBISWorld Navigation Tips (n.d.). IBISWorld, Inc., New York, NY. Written Report Length requirements: 4 pages minimum (not including Cover and Reference pages). NOTE: You must submit 4 pages of written discussion and analysis. Provide a brief introduction to/background of the problem, Provide a brief description of organic food industry and target market characteristics such as their demographics, lifestyles, and shopping behaviors. Provide a written analysis that addresses each of requirements listed under the Assignment section. Write clearly, simply, and logically. Use double-spaced, black Verdana or Times Roman font in 12 pt. type size. Please use keywords as headings to organize the report. Avoid redundancy and general statements such as “All organizations exist to make a profit.” Make every sentence count. Paraphrase the facts using your own words and ideas, employing quotes sparingly. Quotes, if absolutely necessary, should rarely exceed five words. Required Reading The primary resource for this module is Introductory Business Statistics, by Alexander, Illowsky, and Dean. Alexander, H., Illowsky, B., & Dean, S. (2017). Introductory Business Statistics. Openstax. Retrieved from https://openstax.org/details/books/introductory-business-statistics For this assignment, you should read through the following material in this textbook. There is quite a bit of detailed material, so please start early. Chapter 7: The Central Limit Theorem Sections 7.1 and 7.2 only This chapter explains sampling distributions and the Central Limit Theorem. Chapter 8: Confidence Intervals Sections 8.1, 8.2, and 8.3 only This chapter explains how to calculate confidence intervals for population means and proportions. Chapter 9: Hypothesis Testing with One Sample This chapter introduces hypothesis testing, including the general steps and how to conduct one-sample tests. Chapter 10: Hypothesis Testing with Two Samples Sections 10.1, 10.3, and 10.6 only This chapter expands on Chapter 9 material and focuses on two-sample tests. There are five tests introduced in this chapter, but we will only focus on three of them. Check the following video on histogram: https://youtu.be/4eLJGG2Ad30 If you are not so familiar with Excel, refer to the following link on Excel training videos: https://support.office.com/en-us/article/Excel-training-9bc05390-e94c-46af-a5b3-d7c22f6990bb?ui=en-US&rs=en-US&ad=US
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