Question
This week,you are an analyst a a large consulting firm in the internal analytics group.Your team is looking at consultants' expenses, and trying to find
This week,you are an analyst a a large consulting firm in the internal analytics group.Your team is looking at consultants' expenses, and trying to find a way to get those down using behavioral "nudges". First, you will identify which consultants have expenses in the top 10%. Second, you will analyze the results of a pilot experiment your team has done to try to get expenses down. In that experiment, you sent out emails to top expense-generating consultants letting them know that they had among the highest expenses of any consultants in the company. You recorded their initial daily expenses, their expenses a month after the email, and their expenses 3 months after the email. You would like to know whether the email resulted in the consultants decreasing their expenses, either immediately or over time.
Task 1:Determine which consultants in New York City and Chicago are among the top 10% of expense-generators
- Use the "Expenses NYC and Chicago" data
- What z-score would 10% of consultants have expenses above? You can find this in Excel or any other way you know how. (Hint: you're looking for the theoretical value here, not anything based on the actual data.)
- Calculate z-scores for the NYC consultants (using the NYC sample mean and standard deviation). Do this in Excel.
- Calculate z-scores for the Chicago consultants (using the Chicago sample mean and standard deviation). Do this in Excel
- Identify the NYC and Chicago consultants who have z-scores higher than the threshold you identified earlier.
Task 2: Analyze data from a pilot experiment to determine whether an intervention lowered consultant expenses
- Use the "Expenses experiment" data
- Calculate the mean expenses for each of the three sets of data: Initial, One month, and Three month
- Perform a paired t-test to determine if expenses fell from Initial to One month
- Perform a paired t-test to determine if expenses fell from Initial to Three month
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