Question

13. The Fast N’ Hot food chain wants to test if their “Buy One, Get One...

13. The Fast N’ Hot food chain wants to test if their “Buy One, Get One Free” program increases customer traffic enough to support the cost of the program. For each of 15 stores, one day is selected at random to record customer traffic with the program in effect, and one day is selected at random to record customer traffic with program not in effect. The results of the experiment are documented in DATA link. For each store, compute difference = traffic with program minus traffic without program. At α = 0.05, test the hypothesis that the mean difference is at most 0 (at best the program makes no difference, or worse it decreases traffic) against the alternative that the mean difference > 0 (the program increases traffic).

a. The pvalue of 0.033 provides strong evidence against H0. H0 is rejected at α = 0.05. You decide to recommend further evaluation of the program.

b. The pvalue of 0.002 provides overwhelming evidence against H0. H0 is rejected at α = 0.05. You decide that the program results in increased customer traffic, overall, and recommend the program be implemented.

c. The pvalue rejects H0: Mean difference > 0

d. The pvalue of 0.084 provides weak evidence against H0. H0 is not rejected at α = 0.05. You decide the evidence is not strong enough to recommend further evaluation of the program.

e. The pvalue of 0.221 indicates that the data provide insignificant evidence against H0. H0 is not rejected at α = 0.05. You decide to conclude the study and not to recommend the program.

f. None of the answers are correct.

Customer Traffic
With Program Without Program
134 140
246 233
116 110
42 42
335 332
145 135
164 151
31 33
183 178
149 147
176 162
257 243
155 149
61 48
343 346

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