Lab 3 - Due by the end of Module 3

Use your local RStudio to complete this lab

Complete Lab Exercise 3 in the EMC Lab Guide. For credit, you only need to answer questions that appear below (at the bottom of this document).

Note:

· If you are uncertain about your creation of the file Labs.Rdata in Lab 2, you will need to run Step 9 in Lab 2 again or copy/paste this file from our “Get Stuff” link into a local directory so you can use it for this lab. If you have watched the Lab Introduction Video (from Module 0) and still have questions, watch this video which STARTS (does not complete) Lab 3: Lab 3 starting video.

· In Part 1, Step 1.1, when you run the “setwd” command, it will need to point to the directory you are working in (see Lab Introduction Video).

· Note in Part 1, Step 8 that a “Box and Whiskers” plot separates the data into quartiles by median.

· Note in Part 2, Step 2, we are generating 500 random data points, so no two students “answers” will look alike.

· Note in Part 2, Step 5(2), if your F-stat is large and has a small (less than .05 is standard) p-value, then you would reject the null hypothesis.

· Note in Part 2, Step 5(2), if your p-values for “as.factor(offers)offer1”and “as.factor(offers)offer2” (your coefficients) are low (less than .05 is standard), you can reject the null hypotheses that the mean purchase amount for offer1 was the same as that of no offer, and similarly for offer2 vs. no offer. Likely that is the case with your random data set. However, at this time we do not know if offer1 is different than offer2, and have to continue with the lab.

· Note in Part 2, Step 9: SKIP STEP 9. ggplot is quite intense. The packages may not install correctly.

· Note in Part 2, Steps 10-15: These steps are manual and a business professional would almost never run through these. You do not have to if you do not want to. Step 16 is our money step.

Post all answers/screen shots to your class Google Sites page under “LAB03”.

Part 1, Step 2:

Show a screen shot of the income density plot.

Part 1, Step 3:

Show a screen shot of the rooms factor plot.

Part 1, Step 8, (2):

Show a screen shot of the “Box and Whiskers” plot of the distribution of income as a factor of # of rooms.

Part 2, Step 6, (1) and (2):

Show a screen shot of Tukey’s test for differences in means. (You will see at the top that the mean purchase amount for offer1 was NOT the same as that of no offer, and similarly for offer2 vs. no offer).

Did offer1 and offer2 lead to significantly (at .05) different purchase amounts?

What would you recommend to the Marketing Dept. based on these results?

Part 2, Step 16:

Show a screen shot the results of the t-test. (Since the distribution were generated to be centered at 0 and 2, the p-value should be quite small, thus rejecting the null hypothesis).