Please solve the problems using Minitab (if possible) as the tool.For each problem, (1) specify the business and statistical hypotheses, (2) specify what the Type I and Type II errors are in this business context, and, the implications of making those errors, (3) include the results from Minitab, (4) draw appropriate conclusions to your statistical hypotheses based on the results, and, finally, (5) present the business conclusions in a short non-statistical summary:

Morning House is a mail-order firm which carries a wide range of rather expensive art objects for homes and offices.It operates by advertising a particular item either in selected magazines or in a direct-mail program.Suppose the sales response varies widely by item and the firm's management has been unable to predict in advance which items will sell well and which will not.Consequently the firm frequently experiences either stock-outs or excessive inventories.

For many of the products Morning House sells, it is possible to order a limited amount for inventory and to place a subsequent order for delivery within two weeks.Thus, if the firm could make a early prediction of the ultimate sales of a product, its inventory problems would be greatly reduced.Since it takes approximately six weeks to receive 90% of the response to a given campaign, an accurate prediction of total sales made as late as the end of the first week of receiving orders would be useful.

The first week's sales and total sales of the last 12 campaigns of the firm are shown below.Can the first week's sales be used to predict total sales?

First week'sTotal

CampaignSalesSales

132167

22091

3114560

466335

51870

6125650

783401

865320

994470

10515

1139210

1250265

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(Source: Unknown)