Question

USING R TO ANSWER QUESTION: Performance Tires plans to engage in direct mail advertising. It is currently in negotiations to purchase a mailing list of the names of people who bought sports cars within the last three years. The owner of the mailing list claims that sales generated by contacting names on the list will more than pay for the cost of using the list. (Typically, a company will not sell its list of contacts, but rather provides the mailing services. For example, the owner of the list would handle addressing and mailing catalogs.) Before it is willing to pay the asking price of $3 per name, the company obtains a sample of 225 names and addresses from the list in order to run a small experiment. It sends a promotional mailing to each of these customers. The data for this exercise show the gross dollar value of the orders produced by this experimental mailing. The company makes a profit of 20% of the gross dollar value of a sale. For example, an order for $100 produces $20 in profit.

c. Describe the appropriate hypotheses and type of test to use. Choose (and justify) an alpha-level for the test. Check whether the sample size condition and the random sample condition are met.

d. Summarize the results of the sample mailing. Use a histogram and appropriate numerical statistics.

e. Summarize the results of the test. Make a recommendation to the management of Performance Tires

173.08
0
0
0
0
156.84
0
136.57
303.15
0
0
0
0
0
0
0
200.49
0
0
0
0
0
0
0
0
0
0
0

Answer 1