Question

Hours	#Customers	#Item Purchased
9am-9.30am	12	20
9.30am-10am	7	4
10am-10.30am	7	11
10.30am-11am	18	29
11am-11.30am	11	26
11.30am-12pm	18	36
12pm-12.30pm	18	40
12.30pm-1pm	26	41
1pm-1.30pm	11	15
1.30pm-2pm	18	18

Based on experience on average 10 customers enter the store every 30 mins. To verify this assumption, she has recorded the customer's foot traffic for 5 hours.

- run a hypothesis testing to check if the average number of customers per 30 min is greater than 10 customers per 30 min

H₀ = No of customers or 30 min is NOT greater than 10

H₁ = No of customers or 30 min is greater than 10

Q: What is the test statistics of this hypothesis testing? (Based on a significance level of 10%, can we reject the null hypothesis?) And what is the correlation value between number of customers entering the store and number of purchased items?

Answer 1

Hypothesis Testing

One sample t-test is used to test whether the average number of customers per 30 min is greater than 10.

Mean and standard deviation was calculated using MS Excel following is the screen shot:

Following are steps followed for one sample t-test:

(5) Conclusion

At the 0.10 significance level, there is enough evidence to claim the average number of customers per 30 min is greater than 10.

Correlation Calculation

The correlation value between number of customers entering the store and number of purchased items is 0.8428