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).

With Program 149 225 112 52 336 146 143 35 185 147 167 249 161 44 347

Without Program 140 233 110 42 332 135 151 33 178 147 162 243 149 48 346

Solutions

Expert Solution

1) Hypothesis :

H0 : mu_d = 0 vs H1 : mu_d > 0
2) Test Statistics = 2.2656
3) Critical value = 1.761
4) Decision - Reject H0 if t cal > t table = 1.761
5) Conclusion - "Buy one Get One Free" program increases customer traffic enough to support the cost of the program.

PL??


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