A study was carried out to assess the effectiveness of corporate marketing depar

Question

A study was carried out to assess the effectiveness of corporate marketing
departments at firms in three Western and three Eastern countries. The countries and
the sample size of firms in any given country are: Austria, 79; Germany, 135; United
States. 120; Hong Kong, 69; Singapore, 137; Thailand, 200. The study's computed F
statistic value was 12.64, and the study's authors claim that this result is highly signifi
cant, with a pvalue of less than 0.01.
a. State the null and alternative hypotheses for this study.
b. What are the degrees of freedom for error?
c. What are the degrees of freedom for "factor"?
d. What are the degrees of freedom for "total"?
e. Carry out the test and state your conclusions.
f. Do you agree with the study's reported estimate of the pvalue? Can you
estimate this level of significance better than the study's authors? Explain.

g Write a short report explaining in words exactly what you found and what

it may mean for marketing departments in different countries.

Explanation / Answer

Answers:

Part a

Null hypothesis: H0: There is no any statistically significant difference in the average effectiveness of corporate marketing departments at firms in the three western and three eastern countries.

Alternative hypothesis: Ha: There is a statistically significant difference in the average effectiveness of corporate marketing departments at firms in the three western and three eastern countries.

Part b, c and d

Now, we have to find the degrees of freedom for error.

Total number of factors = 6

Degrees of freedom for factor = 6 – 1 = 5

Total sample size = N = 79+135+120+69+137+200 = 740

Total degrees of freedom = 740 – 1 = 739

Degrees of freedom for error = 739 – 5 = 734

Part e

We are given a test statistic value = F = 12.64

By using F-table, the p-value = 0.0000

Alpha value = 0.01

P-value < Alpha value

So, we reject the null hypothesis that there is no any statistically significant difference in the average effectiveness of corporate marketing departments at firms in the three western and three eastern countries.

This means we concluded that there is sufficient evidence that there is a statistically significant difference in the average effectiveness of corporate marketing departments at firms in the three western and three eastern countries.

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