Question

A retail company in Halifax, which operates in two locations in the city (i.e., Store A...

A retail company in Halifax, which operates in two locations in the city (i.e., Store A and Store B), has seen its profits drop in recent years due to decreasing sales numbers. The company’s Director of Sales believes that this is due to employees’ poor sales skills and has hired you to help address this problem. You perform a quasi-experiment where employees working in Store A receive sales skills training over a period of several weeks, while employees working in Store B serve as the control group. After training is completed, you track sales in both stores over a period of six months to assess the impact of sales skills training on store performance.

a. State an appropriate null hypothesis.

b. State an appropriate alternative hypothesis.

c. Describe a Type I error in the context of this study.

d. Describe a Type II error in the context of this study.

Math   Statistics-And-Probability   
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Homework Answers

Answer #1

a. State an appropriate null hypothesis.

Null hypothesis: H0: There is no significant difference in performance of the two stores A and B.

b. State an appropriate alternative hypothesis.

Alternative hypothesis: Ha: The performance of the store A is more than the performance of the store B.

c. Describe a Type I error in the context of this study.

Type I error in the context of this study occurs when we conclude that the performance of the store A is more than the performance of the store B; in fact there is no significant difference in performance of the two stores A and B.

d. Describe a Type II error in the context of this study.

Type II error in the context of this study occurs when we conclude that there is no significant difference in performance of the two stores A and B; in fact, the performance of the store A is more than the performance of the store B.

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