MKTG 376

Assignment 1: Data, Hypothesis Testing & Excel

Due: February 3, at the Start of Class

1. For each of the variables below, describe their type (categorical – ordinal or nominal;
numerical – discrete/continuous): (2 points)
a. College year
Categorical- nominal

b. Number of text messages sent

Numerical- discrete

c. Level of agreement (example: strongly agree, somewhat agree, etc.)

Categorical- ordinal

d. Body Temperature in Fahrenheit

Numerical- continuous

2. You can download the data CoffeeData4Testing.xlsx from D2L

Use the Pivot Table tool to compute the input for the test statistics. Use Excel
functions to compute the values of the test statistics. Assume for all hypothesis tests
that have a level of significance α=.05.

Data Description: CoffeeData4Testing.xlsx contains data from a survey about coffee

consumption. The variables are:
ID A unique identifier for each respondent in the survey.
Gender 1=Men 2=Women
Age Age of the respondent
Spending Money spent on coffee a day
Type Preferred Type of Coffee: Hot, Cold or Frozen
Make/Buy Whether the primary method of acquiring coffee is to make or buy

Exercise 1. Descriptive Statistics (4 points)

a. Calculate the following statistics for the spending: mean, median, standard error,
standard deviation, sample variance, count. (Hint: Use Analysis Toolpak DataData
AnalysisDescriptive Statistics)
Descriptive Statistics
Mean  6.09237623762376
Median 6.21
Standard Error  0.346098198979608
Standard Deviation  3.47824385243901
Sample Variance  12.0981802970297
 Count  101
b. Create a histogram for the spending in a column chart. Is it symmetric or skewed?

Copy and paste the charts

Histogram
14
12
10
Frequency

8
6
4
2
0

e
1
2
3
4
5
6
7
8
9
10
11
12
13
14
or
M
Bins

- Right Skewed

Exercise 2. Test One Mean (7 points)

a. A coffee shop owner wanted to determine if the average spending on coffee per day
for men was greater than 3 dollars. Write the null and alternative hypotheses for this
question

H0: the average spending for men is not greater than $3 per day.

HA: Spending coffee for men is greater than $3 per day.

b. Compute z-statistic
6.246

For the mean and variance, create a pivot table and:

1. Put GENDER in ‘ROW’.
2. Put Spending in ‘VALUES’.
3. Remember to change the Field in the top left corner from SUM to the
AVERAGE for the mean, VAR for the variance, Count for the sample size.

x̄ men = average spending for men = 6.56

2
Smen = variance of spending for men = 13.32

nmen = number of men = 41

c. Test Statistics
 1-tail or 2-tail:

1-tail test because it says greater than

Critical Value:
*hint: use excel function =NORM.S.INV(0.95): 1.645

d. Should you fail to reject H0 or reject H0 and why? State your conclusion.

When the test statistic is greater than the critical value, we reject the null
hypothesis. Therefore, we reject the null hypothesis; the average spending per day
for men is greater than $3.

Exercise 3. Test of Difference in Proportion (6 points)

Test the following hypothesis:

H0 : Proportion of men who buy coffee = Proportion of women who buy coffee
H1 : Proportion of men who buy coffee ≠ Proportion of women who buy coffee

a. Compute z-statistic
( p1  p2 ) 1.34
z 
1 1
p(1  p)   
 n1 n2 

You will need the following cross tab for the computation:
1. Put GENDER in ‘ROW’.
2. Put MAKE/BUY in ‘COLUMN’.
3. Drop ID in the ‘VALUES’.
4. Remember to change the SUM OF ID to COUNT OF ID.

p1 =
28/41 p2 =
33/60 n1 =
41 n2 =
60

n1 p1 + n2 .60396
p2
p= =
n1 + n2

1 1
p (1  p )   .0991

 n1 n2 
b. Test Statistics

1-tail or 2-tail:
2-tail test, because it is not equal to.

Critical Value:
*hint: use excel function =NORM.S.INV(0.975): 1.96

c. Should you fail to reject H0 or reject H0 and why? State your conclusion.

We fail to reject the null because the test statistic is less than the critical value.
The proportion of men that buy coffee is equal to the proportion of women that
buy coffee.

3. The tapedata.xlsx (posted on D2L) contains data for weeks during 2009-2011 for the
unit sales of 3M tape, price charged, whether an ad campaign was run that week
(1=ad campaign), and whether the product was displayed on the end of the aisle
(1=end cap). Use this file to perform the following exercises: (6 points)

a. Does there appear to be an upward trend in sales? (CORRECTION: Hint:

summarize units sold by year)

Row Labe ls Sum of Units Sold

2009 88874.96554
2010 69508.22495
2011 42212.27134
Grand Total 200595.4618

No. there does not appear to be an upward trend in sales. There is a

downward trend in sales.
b. Analyze the nature of the monthly seasonality of tape sales a line graph (Hint:
show unit sales as percentage)

Unit Sales Percentage

25.00%

20.00%

15.00%

10.00%

5.00%

0.00%
Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug Oct Dec Feb Apr Jun Aug
2009 2010 2011

There are seasonal changes in sales. Based on the line chart, sales are higher
in the summer than other seasons.

c. Does an ad campaign appear to increase unit sales on average? (Hint: Just

compare the average of units sold)

Row Labe ls Ave rage of Units Sold

0 1195.179711
1 2461.186188
Grand Total 1485.89231

Based on the results of the pivot table, it appears that the average sales are
higher with an add campaign than without.