Question

In: Statistics and Probability

You want to determine whether there is a statistically different average weekly sales between Sales Rep...

You want to determine whether there is a statistically different average weekly sales between Sales Rep A and Sales Rep B.

* Create Null and Alternative Hypothesis statements that would allow you to determine whether their sales performance is statistically different or not.

* Use a significance level of .05 to conduct a t-test of independent samples to compare the average weekly sales of the two candidates.

* Calculate the p-value?

SAMPLE OF WEEKLY SALES
Sales Rep # AverageWeekly Sales($) Week # Weekly Sales($) - Rep A Weekly Sales($) - Rep B
1 1228 1 4657 5839
2 7374 2 6133 2602
3 1055 3 3438 2830
4 1859 4 7394 4763
5 3938 5 4327 3740
6 1692 6 2552 2315
7 569 7 7063 1599
8 4059 8 7844 1629
9 3689 9 6898 2416
10 607 10 4003 2107
11 1370 11 6884 4237
12 3735 12 4007 6322
13 3305 13 7214 3710
14 7228 14 2358 5890
15 6279 15 7745 5119
16 1671 16 1337 5184
17 5708 17 1052 3439
18 2569 18 6056 4828
19 4163 19 1495 3667
20 1519 20 3530 3518
21 7734 21 4749 6073
22 784 22 3833 5566
23 6766 23 7869 4555
24 7261 24 4541 5867
25 5034 25 6882 6039
26 7115 26 3868 1032
27 6291 27 5934 4834
28 6287 28 4447 3687
29 2080 29 5504 5500
30 7621 30 5554 4659
31 1047
32 6517
33 5172
34 3876
35 5429
36 4538
37 3786
38 2510
39 4863
40 7246
41 1175
42 641
43 4269
44 7034
45 3406
46 2256
47 3182
48 5178
49 4428
50 1189

Solutions

Expert Solution

Null hypothesis H0 : =     

Alternative hypothesis Ha :

is the mean weekly sales rep A and   is the mean weekly sales rep B.

First we have to perform F test to check the significance between the variances of two weekly sales data sets,

Using the excel function =FTEST( data set1, data set 2)

Using this function we got the p value = 0.1375 , we are given = 0.05

As p value is greater than , variances of the two data sets are not significantly different .( they are equal ) Therefore we have to used pooled variance 2 sample t test.

( Since Ha consist of sign , this test become two tailed test )

I have used excel to perform pooled variance ( or equal variance ) 2 sample t test for the given data set.

Go to Data menu ---> Data analysis ---> t-Test: Two-Sample Assuming Equal Variances and click on OK.

Then Input for variable 1 : Select the all numbers in column Rep A

For variable 2 : select the all numbers in column Rep B

Set hypothesis mean difference = 0 and check the box for Labels then click on OK.

The following output will be appeared :

So according to the results t test statistic = 1.85 ( rounded to 2 decimal places )

p value of the t test = 0.0695

Decision rule :  if p value is less than then, reject the null H0

  if p value is greater than then, fail to reject the null H0 .

We are given = 0.05

As p value (0.0695 ) is greater than (0.05) we fail to reject the null H0

Conclusion : There is no significant difference between mean weekly sales rep A and   is the mean weekly sales rep B.


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