A study was carried out to compare mean customer satisfaction scores at service
ID: 3242379 • 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 8.5 in cuty A, 8.8 in city B, and 8.1 in city C, Each sample size = 100, MS error - 0.36, and the F test statistic = 27.7 has P=Value <0.001.
Set up the indicator variables to represent the three service centers.
A. x1=0 for observations in city A, = 1 for observations in city B, and = 2 for obervations in ciy C, x2= 1 for when at least two observations are equal and = 0 otherwise
B. x1=0 for observations in city A, and = 0 for observation in city B, x2 = 1 for observation in cuty C and = 0 otherwose
C. x1 = 1 for observations in city A and = 0 othersise, x2 =1 for observations in city B and = 0 otherwise
b. What is the prediction equation? How do the erms in the prediction equation relate to the sample means?
Find the prediction equation
y=__+__x1+__x^2
How do the terms in the prediction equation relate to the sample means?
The constant is the sample mean for (city A, city B, city C, or all three cities combined) the coefficient of x1 is the difference between the sample means for (city A and city B, city B and city C, or city A and city C) and the coeffiecient of x2 is the difference between the sample means for (city A and city B, city B and city C, or city A and city C)
Explanation / Answer
The indicator variable -
Answer (A) X1 = 0 for observations in city A, =1 for observations in city B, and =2 for observations in city C, X2 =1 for when atleast two observations are equal and =0 otherwise.
How do the terms in the prediction equation relate to the sample means ?
The constant is the sample mean for all three cities combined the coefficient of X1 is the difference between the sample means for City A and City B and the coefficient of X2 is the difference between city B and city C .
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