Problem Set: Week Two Complete the problems below and submit your work in one Word document. Be sure to show all of your work and clearly label all calculations. Calculations completed in Excel must...

Problem Set: Week Two
Complete the problems below and submit your work in one Word document. Be sure to show all of your work and clearly label all calculations. Calculations completed in Excel must be copied and pasted into a single Word document. No Excel documents will be graded.
1. Problem One
Suppose that an automotive parts and accessories chain is experimenting with a new sales promotion. Two similar stores are selected for the experiment. For Store 1, nothing changes. This store constitutes the control group. For Store 2, the treatment group, the promotion is implemented.
Sales in hundreds of dollars over a five-day period are as follows:
a. Control: 6, 6, 7, 10, 12, 9, 6, 5, 5, 7
b. Treatment: 2, 5, 2, 4, 7, 1, 2, 3, 4, 5
The expectation that sales will be higher in the treatment group makes this a one-tailed test; the alternate hypothesis is m1 < m2. Use Excel to determine whether differences between the two groups are statistically significant.
Show all of your work and clearly label each of your calculations. Share your calculations and your interpretations of your findings in your Word document.
Solution:
    t-Test: Two-Sample Assuming Equal Variances
    
    
    
     
    Control
    Treatment
    Mean
    7.3
    3.5
    Variance
    5.344444
    3.388889
    Observations
    10
    10
    Pooled Variance
    4.366667
    
    Hypothesized Mean Difference
    0
    
    df
    18
    
    t Stat
    4.066245
    
    P(T<=t) one-tail
    0.000362
    
    t Critical one-tail
    1.734064
    
    P(T<=t) two-tail
    0.000725
    
    t Critical two-tail
    2.100922
     
Null Hypothesis (Ho): m1 ≥ m2
Alternative Hypothesis (Ha): m1 < m2
Test Statistics
t = 4.066
P-value = 0.00036
Since p-value is less than 0.05, we reject the null hypothesis.
There is sufficient evidence to conclude that the expectation that sales will be higher in the treatment group.
2. Problem Two.
Suppose that a home builder is approached by a customer who wants to move in as soon as possible. The customer chooses three home designs that she likes and asks the home builder which one could be completed the fastest. To compare the three designs on speed of completion, the builder randomly selects 10 homes that he built in the past based on each of the three designs.
Use the...