Hypothesis Testing Worksheet

Dataset

Assume you have collected data on the current prices and monthly sales for a specific product category for the past year. Here is the simplified dataset:

Month	Current Price ($)	Increased Price ($)	Monthly Sales
Jan	50	60	1000
Feb	50	60	980
Mar	50	60	1050
Apr	50	60	1100
May	50	60	950
Jun	50	60	1025
Jul	50	60	975
Aug	50	60	1035
Sep	50	60	1105
Oct	50	60	1120
Nov	50	60	980
Dec	50	60	1050

1. What is the research objective of this hypothesis testing scenario?

The research goal is to see if increasing the price of a certain product category from $50 to $60 has a substantial impact on monthly sales volume.

1. Based on the dataset, calculate the average monthly sales for the current price and the increased price.

1. What is the null hypothesis (H0) in this scenario, considering the dataset?
2. What is the alternative hypothesis (H1) in this scenario, considering the dataset?
3. Calculate the standard deviation of monthly sales for both the current price and the increased price.
4. What statistical test would you use to test the hypothesis based on this dataset, and why?
5. Assuming a significance level (alpha) of 0.05, perform the hypothesis test using the dataset to determine whether there's a significant difference in revenue between the current price and the increased price.
6. What are the p-value and the test statistic for the hypothesis test?
7. Based on the results, do you reject or fail to reject the null hypothesis, and why?
8. How would you communicate the results and recommendations based on the hypothesis testing to the company's stakeholders, using the dataset's findings?