The management of Discount Furniture, a chain of discount furniture stores in the Northeast, designed an incentive plan for salespeople. To evaluate this innovative plan, 12 salespeople were selected at random, and their weekly incomes before and after the plan were recorded.

Was there a significant increase in the typical salesperson’s weekly income due to the innovative incentive plan? Use the .05 significance level.

a. State the null and alternate hypotheses.

b. What is the p-value?

c. Is the null hypothesis rejected?

d. What is the conclusion indicated by the analysis?

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Salesperson Before After Sid Mahone $320 $340 Carol Quick 290 285 Tom Jackson 421 475 Andy Jones 510 510 Jean Sloan 210 210 Jack Walker 402 500 Peg Mancuso 625 631 Anita Loma 560 560 John Cuso 360 365 Carl Utz 431 431 A. S. Kushner 506 525 Fern Lawton 505 619