Part 1

1) If you create z-scores for each variable, do any firms represent outliers? What happens to the key aspects of your descriptive statistics if you remove the outliers?

2) What is the probability of a new firm observation to this dataset having Profits greater than $20,000 (millions, using the data in the format listed)? What is the probability of a new firm reporting negative Earnings Per Share? Please report these findings both with and without outliers.

“3) Are the companies with more employees significantly more profitable than companies with fewer employees? (Run the analysis with all data and do not remove outliers).

”

Part 2

4) In general, are people more satisfied with New Clocky than Old Clocky?

5) Is there a difference in satisfaction between the original and the new versions as grouped across the four prototypes? Is there a significant interaction? If so, please graph and interpret this finding.

6) Does recommendation likelihood differ by program type? Please use post-hoc testing to compare the differences if appropriate.

Part 3

7A) Does multicollinearity appear to be a problem? How do you know and if so, how will you proceed?

7B) Does innovativeness positively influence stock price? Please graph and estimate the regression equation and interpret your findings. What would the predicted stock price be if you had a new firm observation with an innovativeness score of 45? If you had a new firm with an innovativeness score of 70?

8) New Direction is piloting a program to develop extreme innovativeness at the companies they serve. They want to test whether innovativeness has a nonlinear relationship with stock price as a way to help sell this new program. Is the relationship nonlinear? Please graph and report your findings.

9) How do the firm characteristics of competitive intensity and planning rigidity influence ROI? How do these same two variables influence stock price? Which is the better model and why? Estimate both ROI and stock price if we acquire a new firm observation with a competitive intensity score of 30 and a planning rigidity score of 25.

10) Is there a significant difference in stock price values for firms in the three industry groupings? Perform any post-hoc tests as needed.