In an Introductory Marketing Class Students Were Presented with 6

question 17

Essay

In an introductory marketing class students were presented with 6 items they could
bid on in an auction. They were asked to bid privately and also estimate the "typical"
bid for each item by their classmates. The items were randomly selected from a large
list of items that students might purchase. An initial analysis of the data established
the plausibility that the distribution of differences (estimated - actual) is
approximately normal. Actual \& Estimated
Median Bids (\$)
for Typical Goods
$\begin{array}{|c|c|c|c|}\hline \text { Good } & \text { Actual } & \text { Estimated } & \text { Diff } \\\hline \begin{array}{c}\text { Teddy } \\\text { Bear }\end{array} & 1.00 & 4.90 & 3.9 \\ \text { Music CD } & 1.25 & 4.53 & 3.28 \\\text { Red velvet } & 2.70 & 5.44 & 2.74 \\\text { Sachet } & & & \\\begin{array}{c}\text { Soma wooden } \\\text { puzzle }\end{array} & 3.00 & 5.17 & 2.17 \\\begin{array}{c}8 \mathrm{oz} \text { smoked } \\\text { Salmon }\end{array} & 3.00 & 6.67 & 3.67 \\\begin{array}{c}\text { 1 lb Jelly } \\\text { Bellies }\end{array} & 4.00 & 7.30 & 3.3\\\hline\end{array}$

a)Construct a $95 \%$ confidence interval for the mean difference between the actual bid and the estimated "typical" bid for the population of items.


b) Do the data indicate that the mean differs for the actual and estimated "typical" bids? Provide an appropriate statistical justification using your response in part (a).

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Definitions:

Leader's Skill

Refers to the capabilities and competencies that enable an individual to lead, influence, and guide groups or organizations effectively.

Planning

A process of setting objectives and determining the actions required to achieve these goals.

Problem Solving

A mental process involving analysis and resolution of obstacles or challenges by identifying solutions.

Operational Problems

Challenges and issues that arise in the day-to-day tasks and activities of running a business or organization.