# Question

A supermarket chain wants to know if their “buy one, get one free” campaign increases customer traffic enough to justify the cost of the program. For each of 10 stores they select two days at random to run the test. For one of those days (selected by a coin flip), the program will be in effect. They want to test the hypothesis that there is no mean difference in traffic against the alternative that the program increases the mean traffic. Here are the results in number of customer visits to the 10 stores:

a) Are the data paired? Explain.

b) Compute the mean difference.

c) Compute the standard deviation of the differences.

d) Compute the standard error of the mean difference.

e) Find the value of the t-statistic.

f) How many degrees of freedom does the t-statistic have?

g) Is the alternative one- or two-sided? Explain.

h) What is the P-value associated with this t-statistic?

(Assume that the other assumptions and conditions for inference are met.)

i) At α = 0.05, what do you conclude?

a) Are the data paired? Explain.

b) Compute the mean difference.

c) Compute the standard deviation of the differences.

d) Compute the standard error of the mean difference.

e) Find the value of the t-statistic.

f) How many degrees of freedom does the t-statistic have?

g) Is the alternative one- or two-sided? Explain.

h) What is the P-value associated with this t-statistic?

(Assume that the other assumptions and conditions for inference are met.)

i) At α = 0.05, what do you conclude?

## Answer to relevant Questions

A market analyst wants to know if the new website he designed is showing increased page views per visit. A customer is randomly sent to one of two different websites, offering the same products, but with different designs. ...The Consumer Reports article described in Exercise 23 also listed the sodium content (in mg) for the various hot dogs tested. A test of the null hypothesis that beef hot dogs and meat hot dogs don’t differ in the mean ...The accounting firm described in Exercise 28 is interested in providing opportunities for its auditors to gain more expertise in statistical sampling methods. They wish to compare traditional classroom instruction with ...The owner of a small organic food store was concerned about her sales of a specialty yogurt manufactured in Greece. As a result of increasing fuel costs, she recently had to increase its price. To help boost sales, she ...The Price-to-Book-value ratio is often used by investors to indicate whether a stock’s price is particularly high or low relative to the value of the company. But different market sectors expect different Price/Book ...Post your question

0