Business Statistics Kwantlen Polytechnic University Assignment #5

Name: ______________ Student ID: __________ Total marks: 10

Note: Answer all questions in space provided.

Show your work to receive full marks.

Question 1: Suppose you want to investigate if there is a difference between developed markets and emerging markets with respect to the time required to start a business. You select 15 developed countries and 15 emerging countries. The time required to start a business, defined as the number of days needed to complete the procedures to legally operate a business in these countries, is as follows:

Emerging Markets:

25 79.5 5.5 28.9 6.0 7.0 26.0 4.0 18.0 8.4 37.0 12.0 9.8 43.0 25.5

Developed Markets:

2.5 21.0 1.5 3.0 14.0 3.5 10.5 6.5 11.2 2.5 13.0 7.0 10.0 4.5 5.6

a. Assuming that the population variances for developed countries and emerging countries is equal, is there evidence of a difference in the mean time required to start a business between developed and emerging countries? [Use = 0.05]

b. What is the value of the test statistic?

c. What is the p-value?

d. What is your statistical decision?

Question 2: To test the effectiveness of a business school preparation course, 8 students took a general business test before and after the course. The results are as follows:

Exam Score Exam Score

Student Before Course After Course

1 530 670

2 690 770

3 910 1,000

4 700 710

5 450 550

6 820 870

7 820 770

8 630 610

a. State the null and alternative hypotheses to test if the exam scores are higher after the course than before the course.

b. What is the sample mean difference?

c. What is the value of the test statistic?

d. What is the p-value?

e. At (alpha) = 0.05, what conclusion can you draw about the effectiveness of the course?

The End