Question
ABC corporation periodically runs consumer satisfaction tests for its two retail outlets in a city. The company wants to test whether the consumers are equally
ABC corporation periodically runs consumer satisfaction tests for its two retail outlets in a city.
The company wants to test whether the consumers are equally satisfied with the service
provided at these two locations. A Sample of 380 customers selected from location I produced a
mean satisfaction index of 7.6 on a scale of 1 to 10 (1 being the lowest and 10 being the highest)
with a standard deviation of .75. Another sample of 370 customers selected from location II
produced a mean satisfaction index of 8.1 with a standard deviation of .59. Assume that the
customer satisfaction index for each location has unknown but equal population variance.
a) Construct a 98% confidence interval for the difference between the mean satisfaction
indexes for all customers for the two locations.
b) Test at 1 percent level of significance whether the mean satisfaction level for all customers
in the two locations are different.
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