Activity #10You will submit one Word document for this activity. You will create this Word document by cutting and pasting SPSS output into Word. Name the file in the following format: lastnamefirstinitialPSY7107-10.doc (example: smithbPSY7107-10.doc).Part A. SPSS ActivityIn this exercise, you are playing the role of a researcher that is testing new medication designed to improve cholesterol levels. When examining cholesterol in clinical settings, we look at two numbers: low-density lipoprotein (LDL) and high-density lipoprotein (HDL). You may have heard these called “good” (HDL) and “bad” (LDL) cholesterol. For LDL, lower numbers are better (below 100 is considered optimal. For HDL, 60 or higher is optimal.In this experiment, the researcher is testing three different versions of the new medication. In data file “Activity 10.sav” you will find the following variables: group (0=control, 1=Drug A, 2=Drug B, 3=Drug C), LDL, and HDL (cholesterol numbers of participants after 12 weeks).Using a MANOVA, try to ascertain which version of the drug (A, B or C) shows the most promise. Perform the following analyses, and paste the SPSS output into your document.

1. Exploratory Data Analysis.

a. Perform exploratory data analysis on the relevant variables in the dataset. When possible, include appropriate graphs to help illustrate the dataset.

b. Give a one to two paragraph write up of the data once you have done this.

c. Create an APA style table that presents descriptive statistics for the sample.

2. Perform a MANOVA. Using the “Activity 10.sav” data set perform a MANOVA. “Group” is your fixed factor, and LDL and HDL are your dependent variables. Be sure to include simple contrasts to distinguish between the drugs (group variable). In the same analysis, include descriptive statistics, and parameter estimates. Finally, be certain to inform SPSS that you want post-hoc test to help you determine which drug works best.

a. Is there any statistically significant difference in how the drugs perform? If so, explain the effect. Use the post hoc tests as needed.

b. Write up the results using APA style and interpret them.Question 1: A competing hotel has 150 rooms with standard Queen-size beds and two rates: a full price of $200 and a discount price of $120. To receive the discount price, a customer must purchase the room at least two weeks in advance (this helps to distinguish between leisure travelers, who tend to book early, and business travelers who value the flexibility of booking late). You may assume that if a leisure traveler is not able to get the discount rate, she will choose to book at another hotel.

 

For a particular Tuesday night, the hotel estimates that the average demand by business travelers has a mean of 70 rooms and a standard deviation of 29 rooms. Assume that demand follows a Normal distribution around the forecast.

 

   a. Find the optimal protection level for full price rooms (the number of rooms to be protected from sale at a discount price).

 

   b. Find the booking limit for discount rooms.

 

   c. Suppose that for a short time, the hotel's forecast of business customer demand is biased upward: the forecast of 70 rooms is too high and fewer business customers appear, on average. Qualitatively describe the economic consequences of using the protection level and booking limit derived in (a) and (b).

 

   d. Suppose that for a short time, the hotel's forecast of business customer demand is biased downward: the forecast of 70 rooms is too low and more business customers appear, on average. Qualitatively describe the economic consequences of using the protection level and booking limit derived in (a) and (b).

 

 

Question 2: An airline offers two fare classes for coach seats on a particular flight: full-fare class at $440/ticket and economy class at $218/ticket. There are 230 coach seats on the aircraft. Demand for full-fare seats has a mean of 43, a standard deviation of 8, and the following empirical distribution:

 

 

Economy-class customers must buy their tickets three weeks in advance, and these tickets are expected to sell out.

   

a) Find the (i) protection level and (ii) booking limit for low-fare seats.

 

    b) Suppose that unsold seats may sometimes be sold at the last minute at a very reduced rate (similar to USAirways' "esavers" for last-minute travel). What effect will this have on the protection level calculated in (a)? Explain.

 

 

Question 3: An aircraft has 100 seats, and there are two types of fares: full ($499) and discount ($99).

   a) While there is unlimited demand for discount fares, demand for full fares is estimated to be Poisson with mean l=20 (the table below gives the distribution function). How many seats should be protected for full-fare passengers?

 

   b) An airline has found that the number of people who purchased tickets and did not show up for a flight is normally distributed with mean of 20 and standard deviation of 10. The airline estimates that the ill will and penalty costs associated with not being able to board a passenger holding confirmed reservation are estimated to be $600. Assume that opportunity cost of flying an empty seat is $99 (price that discount passenger would pay). How much should airline overbook the flight?