Free «Real Life Research » Essay Sample

1. What is the 95.44 percent confidence interval for estimated satisfaction level in the benchmark survey? What is the 99.74 percent confidence interval?

I (a) n = 1000, average = 8.7, standard deviation = 1.65, expected value 8.5.

Standard error = standard deviation/ square root of the sample size

== 1.65/ square root(1000) = 1.65/31.62, = 0.051, = 0.05

Alpha = 1 – 0.9544 = 0.0456, =0.05

Critical probability = 1-(a/2), = 1 – 0.025, = 0.975

Degrees of freedom = n – 1, = 1000 – 1=999

Critical t score at 0.975 probability = 1.96, therefore critical score

= 1.96*0.05 =0.098

Therefore at 95.44% confidence interval, average rating = 8.7 + or – 0.098

(b) se =1.65/31.62 = 0.05

Alpha = 1 – 0.9974 = 0.0026

Critical probability = 1 – (0.0026/2) = 0.9987

T score at 0.9987 probability = 3.019

Therefore, 3.019*0.05 = 0.15095

At 99.74% confidence interval, the mean rating = 8.7 + or – 0.15095 (Miller, Vandome & McBrewster, 2010)

Assume that the upcoming first-quarter satisfaction survey shows an average rating of 8.4 on satisfaction with meals. Compute the 95.44 percent confidence interval and the 99.74 confidence interval.

Ii (a) N = 500, mean = 8.4, standard deviation = 1.65, expected value 8.5

Standard error = standard deviation/ square root of the sample size

=1.65/square root(500)= 1.65/22.36, se = 0.0738

Alpha = 1 – 0.9544= 0.0456 = 0.05

Critical probability = 1 – (0.05/2) = 0.975

Degrees of freedom, n – 1, = 500 -1 = 499

T score at 0.975 probability = 1.965

Critical value = 1.965*0.0738 = 0.145

At 95.44% confidence interval = 8.4 + or – 0.145

(b) se = 1.65/22.36 = 0.0738

Alpha 1- 0.9974 = 0.0026

Critical probability 1 – (0.0026/2) = 0.9987

Degrees of freedom, n – 1, = 500 -1 = 499

T score at 0.9987 probability = 3.027

Critical value 3.027*0.0738 = 0.2234

At 99.74% confidence interval mean rating = 8.4 + or – 0.2234 (Williamson, 2002)

2. If you were negotiating for Sky Meals, how would you respond to Continental regarding the penalty clause?

Given the penalty of $25000 on every 0.1 points deficit from the expected rating, the penalty is considerably extreme since the rating are based on probabilities and the performance of sky meals. The ratings are primarily a basis of sky meals performance and the public perception. It is, therefore, not reasonable to impose such a hefty penalty; since our primary function will be to collect information and present it to sky meals.