BAUD 3355 Project 2 | Complete Solution

Project 2

BAUD 3355 Spring 2015

Use the “Project 2 data” data set. You may use Excel to help you with the statistical analysis.

Abstract: A supermarket chain wants to know if their “buy one, get one free” campaign increases customer traffic enough to justify the cost of the program. For each of 10 stores they select two days at random to run the test. For one of those days (selected by a coin flip), the program will be in effect. They want to determine whether the program increases the mean traffic. The results in number of customer visits to the 10 stores are in the data set.

Answer each of the questions below using hypothesis testing. Follow the seven-step procedure for testing a hypothesis in your text book as a guide for answering the questions. Use a .05 significance level.

1. Previous data suggests mean store traffic is 145. Is the mean traffic without the program different from 145?
2. Is the mean traffic with the program greater than 145?
3. Did the program increase store traffic? Use a pooled t-test.
4. Did the program increase store traffic? Use a paired difference t-test.

Turn in your findings as described below. Generally the report will be graded for clarity (how easy it is to understand you), completeness (no significant gaps in the information provided) and correctness (the values and descriptions are correct). The report will also be graded on adherence to the report standard. The report will be structured as follows

Section 1: For each question, provide

• The null hypothesis
• The alternate hypothesis
• The test statistic chosen (including which test)
• The critical value and decision rule
• The P-value
• Your findings

Section 2: Questions 3 and 4 ask for two different approaches to the same question. The results differ. Write a paragraph describing which approach is the most appropriate. You should end with a clear (yes-no) conclusion to the question.

1. Previous data suggests mean store traffic is 145. Is the mean traffic without the program different from 145?

1. Hₒ: µ=145 Versus Hₐ: µ≠145