In: Statistics and Probability
The Fast N' Hot food chain wants to test if their "Buy One, Get One Free" program increases customer traffic enough to support the cost of the program. For each of 15 stores, one day is selected at random to record customer traffic with the program in effect, and one day is selected at random to record customer traffic with program not in effect. The results of the experiment are documented in DATA. For each store, compute difference = traffic with program minus traffic without program. At x = 0.05, test the hypothesis that the mean difference is at most 0 (at best the program makes no difference, or worse it decreases traffic) against the alternative that the mean difference > 0 (the program increases traffic)
Customer Traffic |
With Program |
144 |
236 |
108 |
43 |
337 |
134 |
148 |
30 |
181 |
146 |
159 |
248 |
150 |
54 |
349 |
Without Program |
140 |
233 |
110 |
42 |
332 |
135 |
151 |
33 |
178 |
147 |
162 |
243 |
149 |
48 |
346 |
The table given below ,
With Program(X) | Without Program(Y) | di=X-Y | di^2 |
144 | 140 | 4 | 16 |
236 | 233 | 3 | 9 |
108 | 110 | -2 | 4 |
43 | 42 | 1 | 1 |
337 | 332 | 5 | 25 |
134 | 135 | -1 | 1 |
148 | 151 | -3 | 9 |
30 | 33 | -3 | 9 |
181 | 178 | 3 | 9 |
146 | 147 | -1 | 1 |
159 | 162 | -3 | 9 |
248 | 243 | 5 | 25 |
150 | 149 | 1 | 1 |
54 | 48 | 6 | 36 |
349 | 346 | 3 | 9 |
Total | 18 | 164 |
From table ,
Let ,
Hypothesis : VS
The test statistic is ,
Critical value : ; From t-table
Decision : Here ,
Therefore , fail to reject Ho.
Conclusion : Hence , there is not sufficient evidence to support to claim that "Buy One, Get One Free" program increases customer traffic enough to support the cost of the program.