# Should the CBC hire stars for

Should the CBC hire stars for their movies? To answer thisquestion, run a hypothesis test to see if there is a significantdifference between the ratings of movies with stars versus movieswithout stars. Use the data for CBC movies only. Use 95%confidence. Answer the following: a. What are the null andalternative hypotheses (state in full sentences)? b. Run the testusing Excel and include the output table. Use a t-test assumingequal variances. c. What is your recommendation to the executives?Justify your answer referring to the relevant figures.

 Network Rating Stars CBC 14 1 CBC 11.3 0 CBC 12.4 1 CBC 12.9 0 CBC 13.2 0 CBC 12.8 0 CBC 12.4 1 CBC 13.2 1 CBC 17.5 0 CBC 11.6 0 CBC 12.1 0 CBC 15.6 0 CBC 12.1 1 CBC 11.8 0 CBC 12.3 0 CBC 14.2 1 CBC 11.6 0 CBC 13.3 0 CBC 13.6 0 CBC 12.4 1 CBC 13.8 0 CBC 11.9 0 CBC 14.6 0 CBC 15.8 1 CBC 15.4 1 CBC 12.8 1 CBC 12.8 0 CBC 15.1 0 CBC 11.4 1 CBC 19.1 0

a) The hypothesis are:

H0 : i.e. there is no difference between the ratings of movies withstars versus movies without stars.

H1 : i.e.there is significant difference between the ratings of movieswith stars versus movies without stars.

Data in excel is :

Go under Data->Data Analytics and select the followingtest:

Use following parameters:

You will get an output like this:

c)The t statistic calculated is 0.338 which is less than thecritical value of t by a good margin ( two tailed critical value oft =2.048). So we would basically accept the null hypothesis andconclude that there is no difference between the ratings of movieswith stars versus movies without stars. Recommendation to theexecutives is that they should focus on not hiring stars, and focusthat part of the budget instead in the development of the film,creating meaningful cinema using more money in their pockets.Content superseeds stardom any day.

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