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According to literature on brand loyalty, consumers who are loyal to a brand are

ID: 3238581 • Letter: A

Question

According to literature on brand loyalty, consumers who are loyal to a brand are likely to consistently select the same product. This type of consistency could come from a positive childhood association. To examine brand loyalty among fans of the Chicago Cubs, 368 Cubs fans among patrons of a restaurant located in Wrigley Ville were surveyed prior to a game at Wrigley Field, the Cubs' home field. The respondents were classified as "die-hard fans" or "less loyal fans." The study found that 62.3% of the 138 die-hard fans attended Cubs games at least once a month, but only 20.4% of the 230 less loyal fans attended this often. Analyze these data using a significance test for the difference in proportions. (Let D = pdie-hard pless loyal. Use = 0.05. Round your value for z to two decimal places. Round your P-value to four decimal places.)

z =   __________

P-value =   ___________

Analyze these data using a 95% confidence interval for the difference in proportions. (Round your answers to three decimal places.)             ( _____ , _____ )

Write a short summary of your findings. ______________________

Explanation / Answer

Let me upload minitab output

n1 = 138, n2 = 230

x1 = 138 * 0.623 = 86

x2 = 230 * .204 = 47

Test and CI for Two Proportions

Sample X N Sample p
1 86 138 0.623188
2 47 230 0.204348


Difference = p (1) - p (2)
Estimate for difference: 0.418841
Test for difference = 0 (vs not = 0):

The test statistics value is Z = 8.53

P Value = 0.000

95% confidence interval for the difference in proportions

95% CI for difference: (0.323, 0.515)

Since p-value = 0.000 < 0.05 and also 95%  confidence interval for the difference in proportions does not include zero then we conclude that there is significance difference for the difference in proportions at 5% level od significance.

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