Will Improving customer service result in higher stock prices for the companies providing the better service? "When a co

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Will Improving Customer Service Result In Higher Stock Prices For The Companies Providing The Better Service When A Co 1 (105.79 KiB) Viewed 28 times

Will Improving customer service result in higher stock prices for the companies providing the better service? "When a company's satisfaction score has Improved over the prior year's results and is above the national average (currently 75.7), studies show its shares have a good chance of outperforming the broad stock market in the long run." The following satisfaction scores of three companies for the 4th quarters of two previous years were obtained from the American Customer Satisfaction Index. Assume that the scores are based on a poll of 69 customers from each company. Because the polling has been done for several years, the standard deviation can be assumed to equal 6 points in each case. 41 WED NG MAKUN NAGARBETA z value a. For Rite Ald, is the increase in the satisfaction score from year 1 to year 2 statistically significant? Use a = .05 and null hypothesis is Ho 1-2 ≤0. What can you conclude? z value p-value (to 2 decimals) (to 4 decimals) p-value The difference is not statistically significant. b. Can you conclude that the year 2 score for Rite Ald is above the national average of 75.77 Use a = .05 and null hypothesis is Ho≤75.7. Enter negative value as negative number. z value Company Rite Ald Expedia J.C. Penney (to 2 decimals) (to 4 decimals) Year 1 Score 71 78 73 Year 2 Score 72 81 78 (to 2 decimals) (to 4 decimals) We cannot conclude that customer service has improved for Rite Ald. c. For Expedia, is the increase from year 1 to year 2 statistically significant? Use a = .05 and null hypothesis is Ho: 41-4₂ ≤0. p-value The difference Is statistically significant. d. When conducting a hypothesis test with the values given for the standard deviation, sample size, and a, how large must the increase from Year 1 to Year 2 be for it to be statistically significant? (to 2 decimals) e. Use the result of part (d) to state whether the increase for J.C. Penney from year 1 to year 2 is statistically significant. The Increase is statistically significant.