Question

In: Statistics and Probability

The Fast N' Hot food chain wants to test if their "Buy One, Get One Free"...

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

Solutions

Expert Solution

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.


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