Question 123662This question is from textbook Statistical Techniques in Business and Economics,
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Chapter 11: Two-Sample Tests of Hypothesis
21) The management of Discount Furniture, a chain of discount furniture stores in the Northeast, designed an incentive plan for salespeople. To evaluate this innovative plan, 12 salespeople were selected at random, and their weekly incomes before and after the plan were recorded.
Salesperson Before After
Sid Mahone $320 $340
Carol Quick 290 285
Tom Jackson 421 475
Andy Jones 510 510
Jean Sloan 210 210
Jack Walker 402 500
Peg Mancuso 625 631
Anita Loma 560 560
John Cuso 360 365
Carl Utz 431 431
A. S. Kushner 506 525
Fern Lawton 505 619
Was there a significant increase in the typical salesperson's weekly income due to the innovative incentive plan? Use the .05 significance level. Estimate the p-value, and interpret it.
This question is from textbook Statistical Techniques in Business and Economics,
Answer by stanbon(75887)   (Show Source):
You can put this solution on YOUR website! The management of Discount Furniture, a chain of discount furniture stores in the Northeast, designed an incentive plan for salespeople. To evaluate this innovative plan, 12 salespeople were selected at random, and their weekly incomes before and after the plan were recorded.
Salesperson Before After
Sid Mahone $320 $340
Carol Quick 290 285
Tom Jackson 421 475
Andy Jones 510 510
Jean Sloan 210 210
Jack Walker 402 500
Peg Mancuso 625 631
Anita Loma 560 560
John Cuso 360 365
Carl Utz 431 431
A. S. Kushner 506 525
Fern Lawton 505 619
Was there a significant increase in the typical salesperson's weekly income due to the innovative incentive plan? Use the .05 significance level. Estimate the p-value, and interpret it.
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The two sample are dependent because each pair of figures apply to one person.
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Calculate each of the pair differences in the same order.
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Ho: mu of the differences = 0
Ha: mu of the differences is not zero
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I assume you use a T-test on such means problems.
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Test Statistic: t(-25.9167)=-2.2009
p-value = 0.0500
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Conclusion: Since the p-value = alpha = 5% no conclusion can be
made regarding Ho.
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Cheers,
Stan H.
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