Question

A regional manager for Walmart’s grocery stores hypothesized average sales for an energy drink are higher when cans of the drink are located on end-of-aisle displays than when the cans are located on middle-aisle displays. To test their hypothesis, the manager compared sales for the energy drink from March 2020 (when the cans were on end-of-aisle displays) to sales for the energy drink from April 2020 (when the cans were on middle-aisle displays) at eight different stores in the Washington, DC, area. The sum of the differences between sales values based on display location equaled 77 cans and the standard deviation of the differences between the sales values equaled 15.5374 cans.

a. What is the calculated value of the associated test statistic?

b. If the level of significance equals 0.05, what is the critical value of the associated test statistic?

c. Can the manager conclude average sales for an energy drink are higher when cans of the drink are located on end-of-aisle displays than when the cans are located on middle-aisle displays?

Answer 1