A restaurant located in an office building was operating with profit equal to 20
ID: 3173361 • Letter: A
Question
A restaurant located in an office building was operating with profit equal to 20% of gross weekly sales. In an attempt to increase sales, the owners decided to adopt a new strategy for attracting customers to the restaurant by placing weekly advertisements in the city newspaper, at a cost of $50 per week. To assess how effective the advertising has been, the restaurant owners would like to compare the weekly gross sales while using the advertisements with weekly gross sales without the advertisements. Your team has been hired to do the analysis and report your findings to the owners. You have been supplied with weekly gross sales for the 15 weeks since the advertising campaign began and the weekly gross sales for the 24 weeks immediately prior to the campaign.
At a 5% significance level, does the significance test allow the restaurant owners to conclude that the advertising campaign is successful in increasing weekly gross sales, on average?
During Before 5715 4959 5733 5788 5477 5663 5055 5146 6110 5756 5900 5307 5757 5589 5971 4442 5550 5395 6179 5911 4979 5248 5982 5350 5914 5533 5380 5814 6489 4981 5679 4873 5897 5908 5490 5300 5605 4987 4310Explanation / Answer
from above
from above
henre pooled std deviation Sp=((n1-1)S12+(n2-1)S22)/(n1+n2-2))1/2 =429.39
hence std error =Sp(1/n1+1/n2)1/2=141.33
test stat t =(X1-X2)/std errror =2.645
and degree of freedom =n1+n2-2=37
hence for above t stat and 37 degree of freedom p value =0.0059
as p value is less then 0.05 level, we can conclude that sales has increased after campaign
S. no during Before 5715 4959 5733 5788 5477 5663 5055 5146 6110 5756 5900 5307 5757 5589 5971 4442 5550 5395 6179 5911 4979 5248 5982 5350 5914 5533 5380 5814 6489 4981 5679 4873 5897 5908 5490 5300 5605 4987 4310 total 86191.000 128931.000 mean 5746.067 5372.125 std deviation(S) 409.010 441.330