Problem Set: Week Two
Complete the problems below and submit your work in one Word document. Be sure to show all of your work and clearly label all calculations. Calculations completed in Excel must be copied and pasted into a single Word document. No Excel documents will be graded.
Problem One Suppose that an automotive parts and accessories chain is experimenting with a new sales promotion. Two similar stores are selected for the experiment. For Store 1, nothing changes. This store constitutes the control group. For Store 2, the treatment group, the promotion is implemented. Sales in hundreds of dollars over a five-day period are as follows:
Control: 6, 6, 7, 10, 12, 9, 6, 5, 5, 7
Treatment: 2, 5, 2, 4, 7, 1, 2, 3, 4, 5
The expectation that sales will be higher in the treatment group makes this a one-tailed test; the alternate hypothesis is m1