In: Statistics and Probability
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 |
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.