Question

Customer	Evaluation of ABC	Evaluation of XYZ
1	3	5
2	5	5
3	4	3
4	5	4
5	2	3
6	3	3
7	2	3
8	3	2
9	3	5
10	1	3
11	3	2
12	5	5
13	2	4
14	3	3
15	3	4
16	3	3
17	3	5
18	3	4
19	2	4
20	1	3
21	4	3
22	1	3
23	3	4
24	3	4
25	1	3
26	2	3
27	1	4
28	5	4
29	3	3
30	3	4
31	1	3
32	4	3
33	3	4
34	4	3
35	4	3

A large consumer electronics retailer is planning to expand its e-commerce operations. To this end, the management is considering establishing a strategic partnership with courier company XYZ for the delivery of customers’ orders.

Apart from the speed of delivery, the management of the retailer places great emphasis on the quality of service provided by each courier. For this purpose, they have asked 35 customers who have used both couriers in the past to evaluate their quality of service. Their responses are included in the table and range from 1 to 5 with 1 denoting “Poor Service” and 5 denoting “Outstanding Service”. Use an appropriate statistical test to advise the management of the retailer on the basis of these evaluations.

(Hint: Write the relevant formulas in each case and show your calculations. Use appropriate tools from the Data Analysis Toolpak to verify your conclusions.)

Answer 1

Lets say we calculate d=XYZ-ABC

Mean(d)=0.657, SD(d)=1.235

pvalue=P(t>3.147)=0.0012

As pvalue<0.01, we conclude d>0. Hence, Company XYZ has a better rating and management should establish relationship with company XYZ