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A study was carried out to compare mean customer satisfaction scores at service

ID: 3256661 • Letter: A

Question

A study was carried out to compare mean customer satisfaction scores at service centers in city A, in city B, and in city C. The sample means on a scale of 0 to 10 were 8.6 in city A, 8.8 in city B, and 8.2 in city C. Each sample size =100, MS error=0.450.45, and the F test statistic=27.527.5 has P-valuel <0.001. Complete parts a and b below.

a. Set up indicator variables to represent the three service centers. Choose the correct answer below.

A. x 1=1 for observations in city A and =0 for observations in city B, x 2=1 for observations in city C and =0 otherwise

B. x 1=1 for observations in city A and =0 otherwise, x 2=1 for observations in city B and =0 otherwise

C.x 1=0 for observations in city A, =1 for observations in city B, and =2 for observations in city C, x2=1 for when at least two observations are equal and =0 otherwise

b. What is the prediction equation? How do the terms in the prediction equation relate to the sample means?

Find the prediction equation.

y=+__x 1+__ x2

(Type integers or decimals.)

How do the terms in the prediction equation relate to the sample means?

The constant is the sample mean for (city C, city B, all three cities combined,or city A) the coefficient of x 1 is the difference between the sample means for (cityB & city C, city A & city C, or city A & city B) and the coefficient of x2 is the difference between the sample mean for (cityB & city C, city A & city C, or city A & city B)

Explanation / Answer

Answer:

A study was carried out to compare mean customer satisfaction scores at service centers in city A, in city B, and in city C. The sample means on a scale of 0 to 10 were 8.6 in city A, 8.8 in city B, and 8.2 in city C. Each sample size =100, MS error=0.45, and the F test statistic=27.5 has P-valuel <0.001. Complete parts a and b below.

a. Set up indicator variables to represent the three service centers. Choose the correct answer below.

A. x 1=1 for observations in city A and =0 for observations in city B, x 2=1 for observations in city C and =0 otherwise

Answer: B. x 1=1 for observations in city A and =0 otherwise, x 2=1 for observations in city B and =0 otherwise

C.x 1=0 for observations in city A, =1 for observations in city B, and =2 for observations in city C, x2=1 for when at least two observations are equal and =0 otherwise

b. What is the prediction equation? How do the terms in the prediction equation relate to the sample means?

Find the prediction equation.

Y = 8.2 + 0.4 x 1+ 0.6 x2

(Type integers or decimals.)

( 8.6-8.2=0.4 and 8.8-8.2=0.6)

How do the terms in the prediction equation relate to the sample means?

The constant is the sample mean for (city C)

the coefficient of x 1 is the difference between the sample means for ( city A & city C)

and the coefficient of x2 is the difference between the sample mean for (cityB & city C)