1. Are the different forms of consumer installment credit in the following table highly correlated?
|
Debt Outstanding (millions of dollars)
|
|
|
|
|
Year
|
Gas Cards
|
Travel and Entertainment Cards
|
Bank Credit Cards
|
Retail Cards
|
Total Credit Cards
|
Total Installment Credit
|
|
1
|
$939
|
$61
|
$828
|
$9,400
|
$11,228
|
$79,428
|
|
2
|
$1,119
|
$76
|
$1,312
|
$10,200
|
$12,707
|
$87,745
|
|
3
|
$1,298
|
$110
|
$2,639
|
$10,900
|
$14,947
|
$98,105
|
|
4
|
$1,650
|
$122
|
$3,792
|
$11,500
|
$17,064
|
$102,064
|
|
5
|
$1,804
|
$132
|
$4,490
|
$13,925
|
$20,351
|
$111,295
|
|
6
|
$1,762
|
$164
|
$5,408
|
$14,763
|
$22,097
|
$127,332
|
|
7
|
$1,832
|
$191
|
$6,838
|
$16,395
|
$25,256
|
$147,437
|
|
8
|
$1,823
|
$238
|
$8,281
|
$17,933
|
$28,275
|
$156,124
|
|
9
|
$1,893
|
$273
|
$9,501
|
$18,002
|
$29,669
|
$164,955
|
|
10
|
$1,981
|
$238
|
$11,351
|
$19,052
|
$32,622
|
$185,489
|
|
11
|
$2,074
|
$284
|
$14,262
|
$21,082
|
$37,702
|
$216,572
|
2. Formulate a statistical hypothesis appropriate for the consumer group's purpose, then calculate the mean average miles per gallon. Compute the sample variance and sample standard deviation. Determine the most appropriate statistical test using the 0.05 significance level. Click here (https://online.columbiasouthern.edu/CSU_Content/courses/Business/MBA/MBA5652/14L/T-table.pdf) to view the t-distribution table to assist you in solving this problem. Also, refer to the Z-table (Table A.2 in the appendix). Provide your findings in the space provided.
|
Purchaser
|
Miles per Gallon
|
Purchaser
|
Miles per Gallon
|
|
1
|
30.9
|
13
|
27
|
|
2
|
24.5
|
14
|
26.7
|
|
3
|
31.2
|
15
|
31
|
|
4
|
28.7
|
16
|
23.5
|
|
5
|
35.1
|
17
|
29.4
|
|
6
|
29
|
18
|
26.3
|
|
7
|
28.8
|
19
|
27.5
|
|
8
|
23.1
|
20
|
28.2
|
|
9
|
31
|
21
|
28.4
|
|
10
|
30.2
|
22
|
29.1
|
|
11
|
28.4
|
23
|
21.9
|
|
12
|
29.3
|
24
|
30.9
|
3. Case Study- Old School versus New School Sports Fans
Questions-
1. Interpret the computer output. What do the results presented above indicate?
2. Is the analytical approach used here appropriate?
3. Describe an alternative approach to the analysis of the original data. Which of these two analyses would you suggest using?