# Calucations for QNT

Week Six Calculations

1. A research team conducted a study of soft- drink preferences among residents in a test market prior to an advertising campaign for a new cola product. Of the participants, 130 are teenagers and 130 are adults. The researchers secured the following results:

Cola Non-cola
Teenagers 50 80

• Apply the steps in testing a research hypothesis.
• Perform a chi-square test and interpret the results.
• Determine how to present the results.
• How might the results obtained from the test affect the advertising strategy?

2. For the following data, do the following:

• Calculate the correlation between X and Y.
• Interpret the sign of the correlation.
• Interpret the square of the correlation.
• Plot the least-squares line.
• Test for a linear relationship. What do the results indicate?

(1) b 1 5 0.
(2) r 5 0.
(3) An F test.

X Y
25 5
19 7
17 12
14 23
12 20
9 25
8 26
7 28
3 20

3. Fill in the missing blocks for the ANOVA summary table on net profits and market value used with regression analysis.

ANOVA-One Factor Summary Table

Sum of Squares Mean Square F

Regression 1 11,116,995.47 __________ ________

Error ____ ____________ 116,104.63

Total 9 12,045,832.50

• What does the F tell you? (alpha 5.05)
• What is the t-value? Explain its meaning.

4. Answer the questions below using the following Forbes data set.

Forbes 500 Random Subsample (\$, millions)

Assets Sales Market Net Cash Number of (thousands)
Value Profit Flow

1,034.00 1,510.00 697.00 82.60 126.50 16.60
956.00 785.00 1,271.00 89.00 191.20 5.00
1,890.00 2,533.00 1,783.00 176.00 267.00 44.00
1,133.00 532.00 752.00 82.30 137.10 2.10
11,682.00 3,790.00 4,149.00 413.50 806.80 11.90
6,080.00 635.00 291.00 18.10 35.20 3.70
31,044.00 3,296.00 2,705.00 337.30 425.50 20.10
5,878.00 3,204.00 2,100.00 145.80 380.00 10.80
1,721.00 981.00 1,573.00 172.60 326.60 1.90
2,135.00 2,268.00 2,634.00 247.20 55.50 21.20

• Conduct a correlation matrix using the Forbes 500 dataset. Determine which variables have a significant relationship.
• Select an independent and dependent variables and run a regression analysis. What can you conclude from the findings?

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