Question

The following table shows the monthly sales (in units) of six salespersons before and after a bonus plan was introduced. Using α = .05, determine whether the bonus plan has increased sales significantly. Assume the population of differences is normally distributed. (For the following matched samples, let the difference d = After - Before.)

	Monthly Sales
Salesperson	After	Before
1	94	90
2	82	84
3	90	84
4	76	70
5	79	80
6	85	80

Complete the following table (round numbers to two decimal places):

	After	Before
Mean
Variance
t-Stat (test statistic)
p-value (one tail)
t critical value (one tail)

Using a .10 level of significance, test to see if the bonus plan was effective. That is, did the bonus plan actually increase sales? What do you conclude?

Answer 1

from above

mean =3

variance=12.800

t stat =2.0540

p value =0.0476

t critical =2.0150 (at 0.05 level)

t critical =1.476 (at 0.10 level)

since test statistic falls in rejection region we reject null hypothesis
we have sufficient evidence to conclude that bonus plan actually increase sales