Question

# The CEO of a company would like to determine whether advertising increases sales. So the null...

The CEO of a company would like to determine whether advertising increases sales. So the null hypothesis tested is H0: μd ≤ 0. The CEO hires you to conduct the analysis for the period 2018 to 2019. Using a Matched sample design yields the following result:

 t-Test: Paired Two Sample for Means 2019 2018 Mean 191.8 172.05 Variance 2030.574359 2878.664103 Observations 40 40 Pearson Correlation 0.821186783 Hypothesized Mean Difference 0 df 39 t Stat 4.077479845 P(T<=t) one-tail 0.000108536 t Critical one-tail 1.684875122 P(T<=t) two-tail 0.000217072 t Critical two-tail 2.02269092

Note: alpha = 0.05.

1. What p-value do you used to make the decision?
2. Based the results, do you reject or not reject the null hypothesis?
3. Based on your answer in part b, what is your conclusion? Be specific by referencing the hypotheses

From the given information the null and alternative hypothesis is

H0: μd ≤ 0.

H0: μd > 0.

The test is one tailed

a) here we will use p-value =0.0002 to make the decision because test is one tailed

b) since p value is less than 0.05 so we will reject the null hypothesis.

c) we have sufficient evidence to accept the claim that a dvertising increases sales.