Question

The CEO of Kohl’s is interested in understanding whether the average store sales for the stores in the east coast are significantly different from those in the west coast. The CEO suspects that since the company has been advertising more in the east coast, the east coast sales would be higher than those in the west coast. In order to test his hypothesis, the CEO asks his secretary to randomly pick 10 stores each in the east and west coasts and record their average monthly sales for the past year(in thousands of dollars). The data is in eastwest.sav (data set is provided in the D2L content area in Module 3, Assessment section). State the appropriate hypothesis, run the appropriate test using SPSS and provide interpretation.   alpha=0.05

Answer 1

The SPSS output is:

The hypothesis being tested is:

H₀: µ₁ = µ₂

H₁: µ₁ ≠ µ₂

The p-value is 0.088.

Since the p-value (0.088) is greater than the significance level (0.05), we fail to reject the null hypothesis.

Therefore, we cannot conclude that the average store sales for the stores in the east coast are significantly different from those in the west coast.