Question

WinCo Foods, a large discount grocery retailer in the western United States, promotes itself as the lowest priced grocery retailer. In newspaper ads WinCo Foods published a price comparison for products between WinCo and several competing grocery retailers. One of the retailers compared against WinCo was Walmart, also known as a low price competitor. WinCo selected a variety of products, listed the price of the product charges at each retailer, and showed the sales receipt to prove the prices at WinCo were the lowest in the area. A sample of the products and their price comparison at both WinCo and Walmart are shown in the following table:
a) Do the prices listed indicate that, on average, prices at WinCo are lower than prices at Walmart?
b) At the bottom of the price list, the following statement appears: “Though this list is not intended to represent a typical weekly grocery order or a random list of grocery items, WinCo continues to be the area’s low price leader.” Why do you think WinCo added this statement?
c) What other comments could be made about the statistical validity of the test on price comparisons given in the ad?


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  • CreatedMay 15, 2015
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