Question: Keywords: Hypothesis Test, Statistical Significance, p - Value, Alpha, Box Plot Lab Insight: Retail companies need to monitor their sales to ensure they're meeting their
Keywords: Hypothesis Test, Statistical Significance, Value, Alpha, Box Plot
Lab Insight: Retail companies need to monitor their sales to ensure they're meeting their goals across different categories, time periods, and sales methods. In this lab, we calculate summary statistics for a company's online sales and its inperson sales to determine if there is a difference. If the company finds a statistically significant difference in one method of sales over the other, it may take action to increase sales in the lowerperforming method, perhaps by putting together a marketing campaign.
While it is reasonable to assume that the average sales transaction amount for inperson sales is not identical to the average sales transaction amount for online sales, it's important to determine if that difference is statistically significant before taking any actions. In other words, we need to ask: Is the difference in average sales likely just due to chance? Or is the difference large enough that we can assume it is truly at least in part due to the different sales channel? In this lab we test for significant differences between online and inperson sales for Fruity Fruits Company.
The Fruity Fruits Company sells exotic fruit from around the world to customers throughout the United States at retail
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