Question

Question 2 (15 marks What motivates small firms to export their products? To answer this question, a professor in CityU conducted a survey of 137 exporting firms. Firm CEOs were asked to respond to the statement "Management believes that the firm can achieve economies of scale by exporting." on a scale of 1 (strongly disagree) to 5 (strongly agree). Summary statistics for the n 137 scale scores were reported as: X 3.85 and S 1.5. In the journal article, the professor hypothesized that if the true mean scale score exceeds 3.5, then CEOs at all Hong Kong small firms generally agree with the statement. (a) Conduct the appropriate test by critical value approach and using a0.05. State your (10 marks) conclusion in the words of the problem. (b) How large is the p-value? (2 marks) (c) The scale scores are unlikely to be normally distributed. Does this invalidate the inference you made in part (a)? Explain (3 marks)

Answer 1

Ven -H 0.128 IÇ 36 2 = 2,73 l 1 Valueat a o.os scnte scoreexceeds 3.S - value I- pnorm (2.+311) avv Sjnca