BUS 308: Statistics for Managers
A statistics course for managers, focusing on statistical methods and their applications in business decision-making.
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BUS 308: Statistics for Managers
T-Testing and Anova
BUS 308: Statistics for Managers
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:
a. Control: 6, 6, 7, 10, 12, 9, 6, 5, 5, 7
b. Treatment: 2, 5, 2, 4, 7, 1, 2, 3, 4, 5
Hypothesis test:
Null Hypothesis :12 against H1 : 1<2 (One tailed)
t-Test: Two-Sample Assuming Equal Variances
control treatment
Mean 7.3 3.5
Variance 5.3444 3.3889
Observations 10 10
Pooled Variance 4.3667
Hypothesized Mean Difference 0
Df 18
t Stat 4.06625
P(T<=t) one-tail 0.00036
t Critical one-tail 1.73406
P(T<=t) two-tail 0.00072
t Critical two-tail 2.10092
T-Testing and Anova
BUS 308: Statistics for Managers
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:
a. Control: 6, 6, 7, 10, 12, 9, 6, 5, 5, 7
b. Treatment: 2, 5, 2, 4, 7, 1, 2, 3, 4, 5
Hypothesis test:
Null Hypothesis :12 against H1 : 1<2 (One tailed)
t-Test: Two-Sample Assuming Equal Variances
control treatment
Mean 7.3 3.5
Variance 5.3444 3.3889
Observations 10 10
Pooled Variance 4.3667
Hypothesized Mean Difference 0
Df 18
t Stat 4.06625
P(T<=t) one-tail 0.00036
t Critical one-tail 1.73406
P(T<=t) two-tail 0.00072
t Critical two-tail 2.10092
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Document Details
University
Ashford University
Subject
Statistics