Question

Context: For your Friday afternoon report to your boss, you need to let her know if the two stores in Cornelia and Clayton are selling the same volume. You decide to take the weekly sales at each store over the past year to determine if the sales at the two stores are equal.

1a) What test would you use to determine if there is a statistically significant difference between the average weekly sales at the two stores?

a) One sample hypothesis test

b) Two sample hypothesis test

c) Two way ANOVA

d) Chi-Square test

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1b) Assume that you conducted the most appropriate test and found the following:

Z = 0.26

Lower critical value = -1.65

Upper critical value = 1.65

P-value = 0.52

Level of significance = 0.05

Would you reject or not reject the null hypothesis?

a) Reject

b) Not Reject

c) Neither

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1c) Based on this information, which of the following best describes the conclusions that you could draw from this test?

a) There is no statistically significant difference between the average weekly sales of the two stores.

b) The average weekly sales in Cornelia is statistically higher than the average weekly sales in Clayton.

c) The average weekly sales in Cornelia is statistically lower than the average weekly sales in Clayton.

d)There is a statistically significant difference between the average weekly sales of the two stores.

Answer 1

(1) we have to test compare the weekly sales for Cornelia and Clayton. Using weekly sales at each store over the past year to determine if the sales at the two stores are equal, so this that two samples are involved in hypothesis testing

therefore, option B

(2) given that

p value = 0.52

significance level = 0.05

it is clear that the p value is greater than the significance level, which means that we failed to reject the Ho

option B

(3) option A is correct because we failed to reject the Ho of equal means. So, option A is correct

There is no statistically significant difference between the average weekly sales of the two stores.