MODULE 6 Application Assignments

Question 1: Is there a relationship among the variables measuring different aspects of customer
satisfaction?
1. Run a Pearson correlation matrix using delivery reliability, product satisfaction, technical supp
ort, sales satisfaction, overall satisfaction in January and overall satisfaction in June.
Correlations
Delivery

Product

Tech

Sales

Overall

Overall

Reliability

Satisfaction

Support

Satisfaction

Satisfaction

Satisfaction

in January

in June

Satisfaction
Pearson
Correlation
Delivery
Reliability

Correlation
Sig. (2tailed)
N
Pearson

Tech Support
Satisfaction

Correlation
Sig. (2tailed)
N
Pearson

Sales
Satisfaction

.112

.206

.628**

.180

.002

.439

.152

.000

50

50

50

50

50

50

.193

.317*

.726**

.195

.484**

.025

.000

.174

.000

tailed)

Pearson

Satsifaction

.436**

Sig. (2-

Product

.193

Correlation
Sig. (2tailed)
N
Pearson

Overall

Correlation

Satisfaction

Sig. (2-

in January

tailed)
N

.180
50

50

50

50

50

50

.436**

.317*

.133

.340*

.555**

.002

.025

.356

.016

.000

50

50

50

50

50

50

.112

.726**

.133

.173

.326*

.439

.000

.356

.229

.021

50

50

50

50

50

50

.206

.195

.340*

.173

.479**

.152

.174

.016

.229

50

50

50

50

.000
50

50

Pearson
Overall

Correlation

Satisfaction

Sig. (2-

in June

tailed)
N

.628**

.484**

.555**

.326*

.479**

.000

.000

.000

.021

.000

50

50

50

50

50

50

**. Correlation is significant at the 0.01 level (2-tailed).

*. Correlation is significant at the 0.05 level (2-tailed).

2. Create a scatterplot for the following pairs: (1) delivery reliabilityoverall satisfaction in June
; (2) product satisfactionoverall satisfaction in June.
Scatter Plot
Delivery reliability overall satisfaction in June

Product satisfaction overall satisfaction in June

3. Report the descriptive statistics, assumptions tests, as well as tests of statistical significance id
entify of positive and negative relationships.
Descriptive Statistics
Descriptive Statistics
N Minimum Maximum
Delivery Reliability
50
1.0
7.0
Product Satisfaction
50
3.0
8.0
Overall Satisfaction in June 50
3.0
7.0
Valid N (listwise)
50

Mean Std. Deviation

4.340
1.6734
5.340
1.1537
4.700
.9530

The mean delivery reliability score is 4.34 with a standard deviation of 1.6734. This indic
ates that the consumers rated the delivery reliability as better. The minimum and maximum recor
ded delivery reliability scores are 1 and 7 respectively. The mean product satisfaction score is 5.3
4 with a standard deviation of 1.1537. This indicates that the consumers rated the product satisfa
ction as good. The minimum and maximum recorded product satisfaction scores are 3 and 8 resp
ectively. The mean overall satisfaction in June is 4.7 with a standard deviation of 0.9530. This in
dicates that the consumers rated the overall satisfaction in June as better. The minimum and maxi
mum recorded delivery reliability scores are 3 and 7 respectively.
To test whether there is significant relationship between Delivery Reliability and Overall
Satisfaction score, we perform Pearson Correlation test for significance. The null and alternate h
ypotheses are given below:
Null Hypothesis: H0: = 0
That is, there is no relationship between Delivery Reliability and Overall Satisfaction
Alternate Hypothesis: Ha: 0
That is, there is a significant relationship between Delivery Reliability and Overall Satisf
action
Level of Significance:
Let the level of significance be = 0.05
Sample size = n = 50
Correlation Coefficient = = 0.628
Test Statistic:
The test statistic is:

n2
50 2
0.628
8.903
2
1
1 0.6282
Thus, the value of t test statistic is 8.903.

The p value of t test statistic is

P (t > 8.903) = 0.000 (By referring t distribution table)
From the above SPSS output, we see that the p value of Pearson Correlation of test for signific
ance is 0.000.
Since the p value is less than 0.05, there is sufficient evidence to reject the null hypothe
sis at 5% level of significance. Therefore, we conclude that there is a significant relationship bet
ween delivery reliability and overall satisfaction in June. Since the correlation coefficient is posit
ive and falls between 0.4 and 0.7, we conclude that there is a significant moderate positive relatio
nship between delivery reliability and overall satisfaction in June
To test whether there is significant relationship between Product Satisfaction and Overall
Satisfaction score, we perform Pearson Correlation test for significance. The null and alternate h
ypotheses are given below:
Null Hypothesis: H0: = 0
That is, there is no relationship between Product Satisfaction and Overall Satisfaction
Alternate Hypothesis: Ha: 0
That is, there is a significant relationship between Product Satisfaction and Overall Satisf
action
Level of Significance:
Let the level of significance be = 0.05

Sample size = n = 50
Correlation Coefficient = = 0.555
Test Statistic:
The test statistic is:

n2
50 2
0.555
8.329
2
1
1 0.5552
Thus, the value of t test statistic is 8.328.

The p value of t test statistic is

P (t > 8.903) = 0.000 (By referring t distribution table)
From the above SPSS output, we see that the p value of Pearson Correlation of test for s
ignificance is 0.000.
Since the p value is less than 0.05, there is sufficient evidence to reject the null hypothe
sis at 5% level of significance. Therefore, we conclude that there is a significant relationship bet
ween product satisfaction and overall satisfaction in June. Since the correlation coefficient is posi
tive and falls between 0.4 and 0.7, we conclude that there is a significant moderate positive relati
onship between product satisfaction and overall satisfaction in June
Question 2: Does delivery reliability impact overall satisfaction in June?
1. Run a simple regression using delivery reliability as the independent variable and overall satisf
action in June as the dependent variable.
The simple regression equation to predict overall satisfaction in June using delivery reliab
ility as independent variable is:
Overall Satisfaction in June = b0 + b1 * Delivery Reliability

The SPSS output is given below:

Descriptive Statistics
Mean Std. Deviation N
Overall Satisfaction in June 4.700
.9530 50
Delivery Reliability
4.340
1.6734 50
Model Summary
Model R R Square Adjusted R Square Std. Error of the Estimate
1
.628a
.395
.382
.7490
a. Predictors: (Constant), Delivery Reliability
ANOVAa
Model
Sum of Squares df Mean Square
F
Sig.
Regression
17.569 1
17.569 31.314 .000b
1 Residual
26.931 48
.561
Total
44.500 49
a. Dependent Variable: Overall Satisfaction in June
b. Predictors: (Constant), Delivery Reliability

Model

Unstandardized
Coefficients
B
Std. Error

Coefficientsa
Standardized
Coefficients
Beta

(Constant)
3.147
.297
1 Delivery
.358
.064
Reliability
a. Dependent Variable: Overall Satisfaction in June

Sig.

10.595 .000
.628

5.596 .000

95.0% Confidence
Interval for B
Lower
Upper
Bound
Bound
2.550
3.744
.229

.486

2. Report the descriptive statistics, assumptions tests (scatter plots), as well as tests of statistical s
ignificance.
The simple regression equation to predict overall satisfaction in June using delivery reliab
ility as independent variable is:

Overall Satisfaction in June = 3.147 + 0.358 * Delivery Reliability

Going through the ANOVA table, we see that the value of F test statistic is 31.314 and its
corresponding p value is 0.000. Since this p value is less than 0.05, we conclude that the esti
mated regression equation is good fit in predicting the dependent variable overall satisfaction in J
une
The coefficient of determination is 0.395. This indicates that 39.5% of the variation in the
dependent variable is explained by the regression model, while the remaining 60.5% left unexpl
ained.
The coefficient of the independent variable Delivery Reliability is 0.358. This indicates th
at, when the delivery reliability score increase by one unit, then the overall satisfaction in June in
creases by 0.358 units. The t test for significance of slope is carried out to determine whether the
independent variable delivery reliability is a significant predictor of the dependent variable. The
p value of t test statistic is 0.000 which is less than 0.05, indicating that the independent variabl
e delivery reliability is a significant predictor of Overall Satisfaction in June
Question 3: Does delivery reliability and product satisfaction impact overall satisfaction in June
?
1. Run a stepwise multiple regression using delivery reliability and product satisfaction as the ind
ependent variables and overall satisfaction in June as the dependent variable.
Descriptive Statistics
Mean Std. Deviation
Overall Satisfaction in June 4.700
.9530
Delivery Reliability
4.340
1.6734
Product Satisfaction
5.340
1.1537

N
50
50
50

ANOVAa
Model
Sum of Squares df Mean Square
F
Sig.
Regression
17.569 1
17.569 31.314 .000b
1 Residual
26.931 48
.561
Total
44.500 49
Regression
23.674 2
11.837 26.713 .000c
2 Residual
20.826 47
.443
Total
44.500 49

Model

Unstandardized
Coefficients
B
Std. Error

(Constant)
1 Delivery
Reliability
(Constant)
Delivery
2 Reliability

3.147

.297

.358

.064

1.662

.479

.316

.058

Coefficientsa
Standardized
Coefficients
Beta

Product
.312
.084
Satsifaction
a. Dependent Variable: Overall Satisfaction in June

Sig.

10.595 .000
.628

95.0% Confidence
Interval for B
Lower
Upper
Bound
Bound
2.550
3.744

5.596 .000

.229

.486

3.467 .001

.697

2.626

.556

5.464 .000

.200

.433

.377

3.712 .001

.143

.481

2. Report the descriptive statistics, assumptions tests (scatter plots), as well as tests of statistical s
ignificance. Write a brief conclusion statement summarizing your results. What can you tell this
manufacturing company about the relationship among satisfaction variables? Are there any areas
they need to improve? Does adding a second variable to the regression equation increase predicti
on of customer satisfaction?
The simple regression equation to predict overall satisfaction in June using delivery reliab
ility and Product Satisfaction as independent variables is:
Overall Satisfaction in June = 3.147+ 0.316 * Delivery Reliability + 0.312 * Product Satisfaction
Going through the ANOVA table, we see that the value of F test statistic is 26.713 and its
corresponding p value is 0.000. Since this p value is less than 0.05, we conclude that the esti
mated regression equation is good fit in predicting the dependent variable overall satisfaction in J
une
The coefficient of determination is 0.532. This indicates that 53.2% of the variation in the
dependent variable is explained by the regression model, while the remaining 46.5% left unexpl
ained.
On comparing the two regression models, we see that the regression model used two inde
pendent variables delivery reliability and product satisfaction to predict overall satisfaction in Ju
ne is better when compared with the regression model used deliver satisfaction as independent va
riable to predict overall satisfaction in June.
Going through normal probability plot, we see that the plotted points fall close to trend li
ne, indicating that the distribution of errors follows normal. Going through the scatter plot of resi
duals, we see that there exists random pattern in the distribution, indicating that the assumption o
f errors are independently distributed is satisfied

MODULE 7 Application Assignments

Question 1: Before the change of ownership, the company was encouraging its customers to redu
ce private labeling as a way to reduce cost of goods sold. Explore the distribution of customers b
y company sales. Does the distribution of customers (private label, brand label, or both) differ fr
om what one would expect by chance?
To test whether distribution of customers (private label, brand label, or both) differ from
what one would expect by chance, we perform chi square test for goodness of fit. The null and
alternate hypotheses are given below:
Null Hypothesis: H0:
That is, the distribution of customers (private label, brand label, or both) do not differ fro
m what one would expect by chance
Alternate Hypothesis: Ha:
That is, the distribution of customers (private label, brand label, or both) differ from what
one would expect by chance
Level of Significance:
Let the level of significance be = 0.05
Test Statistic:
The SPSS output for chi square test for goodness of fit is given below:
Type of Purchasing
Observed N Expected N Residual
Private Label
18
16.7
1.3
Brand Label
18
16.7
1.3
Both
14
16.7
-2.7
Total
50

Test Statistics
Type of Purchasing
Chi-Square
.640a
df
2
Asymp. Sig.
.726
a. 0 cells (0.0%) have expected frequencies less than 5. The minimum expected cell frequency
is 16.7.
From the above SPSS output, we see that the value of chi square test statistic is 0.64
and its corresponding p value is 0.726. Since the p value of chi square test statistic is
greater than 0.05, there is no sufficient evidence to reject the null hypothesis at 5% level of
significance. Therefore, we conclude that the distribution of customers (private label, brand
label, or both) do not differ from what one would expect by chance