Case Project and Data, please see attached two materials. Please provide both Excel and Paper solutions.
Instruction: Your consulting partnership has been contracted to conduct research into several of the issues related to the legal battle surrounding the Napster Music Community. In this project, you examine user data and provide an overview of usage patterns.
Create a written presentation of your conclusions and recommendation for Napster. Make sure that you respond to all of the questions posed in the project document.
Napster
Your consulting partnership has been contracted to conduct research into several of the issues related to the legal battle surrounding the Napster Music Community (see attached articles from THE WALL STREET JOURNAL, and Associated Press).
You sent a team of summer interns to collect raw data from the field, which have been saved in the Excel file napster.xls.
Your client, a chain of music stores, is interested in several specific issues:
1. What is the average level of monthly sales revenue at its 375 retail stores?
The interns only collected data at 40 of the client’s stores; you need to make some inference about all of the stores based on these 40 (data 1).
2. What proportion of college students downloads a song from Napster at least once per month?
3. Of the college students who do not use Napster, how much money on the average do they spend each month on music compact discs?
The interns interviewed 88 college students, asking how many songs they had downloaded from Napster in the past month. At the same time, they asked the students about their monthly spending habits at the music store (data 2). They also obtained scanner data, and were able to identify the monthly expenditures for specific college student customers at one particular store. At that store, there were 17 students who made purchases both in January of 1999 and in April of 2000. These data appear in the worksheet “data 3”.
4. Has there been a drop in average daily sales revenue since the introduction of Napster? In order to address this question, the company has provided you with daily sales data from one typical store during two months: January 1999 — before the introduction of Napster — and May 2000 — after Napster (data 4).
5. Finally, do college students use Napster more often than older people? Specifically, is the proportion of people who use Napster at least once per month different for people in the age group from 16-to-25 years old than it is for people in the age group from 26-to-35 years old? The interns interviewed 200 people in an effort to answer this issue (data 5).
The client wants you to make any estimates using a 99% confidence level. Your client also expects, as part of your report, that you will identify any problems with your data and what possible errors there might be in your conclusions.
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