Question: A retail chain is interested in determining whether a digital video point-of-purchase (POP) display would stimulate higher sales for a brand advertised compared to the
A retail chain is interested in determining whether a digital video point-of-purchase (POP) display would stimulate higher sales for a brand advertised compared to the standard cardboard point-of-purchase display. To test this, a one-shot static group design experiment was conducted over a four-week period in 100 different stores. Fifty stores were randomly assigned to the control treatment (standard display) and the other 50 stores were randomly assigned to the experimental treatment (digital display). Compare the sales of the control group (standard POP) to the experimental group (digital POP). Review the results of the independent samples t-test output below.
The null hypothesis (H0) proposes that the mean sales of the experimental group (digital display) and the control group (standard display) are equal. These results provide evidence against the null hypothesis, which maintains that there is no discernible difference in average sales between stores with a digital display and those with a standard display. The alternative hypothesis (H1) claims that the mean sales of the experimental group differ from those of the control group.
Do you reject or retain the null hypothesis based on the results of the independent t-test?
Group Statistics | |||||||||||
Experimental Group (Digital Display) / Control Group (Standard Display) | N | Mean | Std. Deviation | Std. Error Mean | |||||||
Point-of-Purchase Sales (POP) | Experimental Group (Digital Display) | 49 | 5688.94 | 1657.318 | 236.760 | ||||||
Control Group (Standard Display) | 51 | 7079.71 | 2268.779 | 317.693 | |||||||
| Independent Samples Test | |||||||||||
| Levene's Test for Equality of Variances | t-test for Equality of Means | ||||||||||
| F | Sig. | t | df | Sig. (2-tailed) | Mean Difference | Std. Error Difference | 95% Confidence Interval of the Difference | ||||
| Lower | Upper | ||||||||||
| Point-of-Purchase Sales (POP) | Equal variances assumed | 5.407 | .022 | -3.489 | 98 | .001 | -1390.775 | 398.654 | -2181.891 | -599.660 | |
| Equal variances not assumed | -3.510 | 91.547 | .001 | -1390.775 | 396.212 | -2177.738 | -603.813 |
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