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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