BUS 308: Statistics for Managers

A statistics course for managers, focusing on statistical methods and their applications in business decision-making.

Olivia Smith

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BUS 308: Statistics for ManagersT-Testing and AnovaBUS 308: Statistics for ManagersSuppose that an automotive parts and accessories chain is experimenting with a new salespromotion. Two similar stores are selected for the experiment. For Store 1, nothing changes. Thisstore constitutes the control group. For Store 2, the treatment group, the promotion isimplemented.Sales in hundreds of dollars over a five-day period are as follows:a.Control: 6, 6, 7, 10, 12, 9, 6, 5, 5, 7b.Treatment: 2, 5, 2, 4, 7, 1, 2, 3, 4, 5Hypothesis test:Null Hypothesis:12against H1 :1<2(One tailed)t-Test: Two-Sample Assuming Equal VariancescontroltreatmentMean7.33.5Variance5.34443.3889Observations1010Pooled Variance4.3667Hypothesized Mean Difference0Df18t Stat4.06625P(T<=t) one-tail0.00036t Critical one-tail1.73406P(T<=t) two-tail0.00072t Critical two-tail2.10092