Posted: June 14th, 2015

1

Business Statistics

Coursework

2

Question

A

Service bundling is the practice of marketing two or more services in a single package. For

example, Virgin Media’s bundle package includes Broadband, Digital TV, Calls package and

Line rental. Marketers spend

billions of dollars each year to promote service bundles by

emphasizing incentives such as savings discounts, convenient billing options, and free gifts.

A group of researchers from the US

1

studied the effects of bundle incentives on 300

consumers’ percei

ved value, search intentions for alternative service providers, and switching

intentions to a competitor.

Perceived Value, Switching Intentions and Search intentions were measured on a continuous

scale.

Service Bundles was a categorical variable with thre

e categories:

?

Unbundled

?

Bundled

–

convenience only

?

Bundled

–

10% Savings discount

The authors used one

–

way ANOVAs to examine the effect of bundles types on Perceived

Value, Switching Intentions and Search Intentions.

1.

What is ANOVA? How many types do y

ou know? Please, specify your answer.

(5 marks)

The ANOVA table for the results was:

2

.

Did bundle type affect significantly any of the continuous variables? Comment on the p

–

value.

(4 marks)

3

.

Which continuous variable do you thi

nk bundle type affects more? Comment on the F

value.

(4 marks)

4

.

The post

–

hoc mean differences for perceived value between bundle types are shown in the

below table:

1

Main results are adapted from Andrews, M.L., Benedicktus, R.L., Brady,

M.K. (2010). The effect of

incentives on customer evaluations of service bundles.

Journal of Business Research

,

63

(1), pp. 71

–

76.

2

Differences (I

–

J) between bundle types

*

p<0.05

Please comment on the

significance and the signs of each paired differences.

(8 marks)

5

.

In your opinion, do bundled services increase customer’s perceived value for the product?

(4 marks)

1

Business Statistics

Coursework

3

:

Question A

A researcher is testing the null hypothesis that there is no relationship between two

continuous variables (customers’ satisfaction: continuous dependent variable and

service quality

: continuous independent

variable). From a sample of n = 16, she

determines that b

1

= +4.8 and S

b1

= 1.6.

a)

What is the value

of t

STAT

?

(4 marks)

b)

What statistical decision should the researcher make? (for 95% confidence

intervals, the t value is

–

2.145 and +2.145).

(4 marks)

c)

Construct a 95% confidence interval estimate of the population slope,

ß

1

(for 95%

confidence intervals, the t value is

–

2.145 and +2.145).

(4 marks)

Question

B

The marketing manager of a large supermarket chain has the

business objective of

using shelf space more efficiently. Toward that goal, he would like to use shelf space

to predict the sales of pet food. Data is collected from a random sample of 12 equal

–

sized stores. For those data, SSR = 20535 and SST = 30025.

a

)

Determine the coefficient of determination, r

2

, and interpret its meaning.

(4 marks)

b)

Determine the standard error of the estimate.

(4 marks)

Question C

What is Simple Linear Regression? What are the assumptions of Simple Linear

Regression?

(5 marks)

2

Question D

A group of researchers from the UK

1

has attempted to address the relationship

between business strategy and firm performance, by

present

ing

an empirical

investigation of medium and large, high

technology, indus

trial manufacturing firms.

Business performance was measured on a continuous scale.

Business strategy consisted of

five

dimensions, each also measured on a continuous

scale:

?

Aggressiveness

?

Analysis

?

Defensiveness

?

Futurity

?

Riskiness

After collecting

a satisfactory sample, the researchers examined the correlation

between the dependent variable (business performance) and the independent variables

(Aggressiveness, Analysis, Defensiveness, Futurity and

Riskines

s). Their results are

shown in Table 1, prod

uced in SPSS.

Table 1. Correlation coefficients among the dependent & independent variables

Business performance

p

–

value

Aggressiveness

–

0.04

0.75

Analysis

0.34

0.04

Defensiveness

0.29

0.03

Futurity

0.21

0.03

Riskiness

0.01

0.89

a)

Give the defini

tion of correlation. What are the general assumptions of correlation?

(6 marks)

b)

Discuss the results of Table 1 in terms of their statistical significance, mag

nitude

and direction.

(8 marks)

c)

Can you conclude that an increase in agg

ressiveness leads to business

performance’s decrease? Please, specify your answer.

(2 marks)

d)

What would be your advice to managers who want to improve the performance of

their businesses?

(4 marks)

Question E

What are the two type

s of Chi

–

square test? Please, discuss each type.

(5 marks)

1

Morgan, R.E. and Strong, C.A. (2003).

Business performance and dimensions of strategic orientation.

Journal of Business Research

,

56

(

3

), pp.

163

–

176

.

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