Question

. For the questions, your report should include the formulated hypotheses, steps of calculation and formulas, your answers and conclusions, and the results from Excel.

A retail company has started a new advertising campaign in order to increase sales. In the past, the mean spending in both the 18–35 and 35+ age groups was at most $70.00. a. Formulate a hypothesis test to determine if the mean spending has statistically increased to more than $70.00.

b. After the new advertising campaign was launched, a marketing study found that the sample mean spending for 400 respondents in the 18–35 age group was $73.65, with a sample standard deviation of $56.60. Is there sufficient evidence to conclude that the advertising strategy significantly increased sales in this age group with significance level of 5%?

c. For 600 respondents in the 35+ age group, the sample mean and sample standard deviation were $73.42 and $45.44, respectively. Is there sufficient evidence to conclude that the advertising strategy significantly increased sales in this age group with significance level of 5%?

Answer 1

The Excel output is:

The formulas are:

	µ	70
	s	56.6
	n	400
	s/√n	2.83
(b)	x	73.65
	t = (x - µ)/s/√n	1.29
	p-value	0.0989
	µ	70
	s	45.44
	n	600
	s/√n	1.85508
(c)	x	73.42
	t = (x - µ)/s/√n	1.84
	p-value	0.0330

	µ	70
	s	56.6
	n	400
	s/√n	=C2/SQRT(C3)
(b)	x	73.65
	t = (x - µ)/s/√n	=(C6-C1)/C4
	p-value	=TDIST(C7,399,1)
	µ	70
	s	45.44
	n	600
	s/√n	=C11/SQRT(C12)
(c)	x	73.42
	t = (x - µ)/s/√n	=(C15-C10)/C13
	p-value	=TDIST(C16,399,1)

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