Question: A fast food chain wants to compare two ways of promoting

A fast-food chain wants to compare two ways of promoting a new burger (a turkey burger). One way uses a coupon available in the store. The other way uses a poster display outside the store. Before the promotion, their marketing research group matches 50 pairs of stores. Each pair has two stores with similar sales volume and customer demographics. The store in a pair that uses coupons is randomly chosen, and after a month long promotion, the increases in sales of the turkey burger are compared for the two stores. The increase was higher for 28 stores using coupons and higher for 22 stores using the poster. Is this strong evidence to support the coupon approach, or could this outcome be explained by chance? Answer by performing all five steps of a two-sided significance test about the population proportion of times the sales would be higher with the coupon promotion.

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  • CreatedSeptember 11, 2015
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