: Kimble Products: Is There a Difference in the Commissions? At the January nati

Question

: Kimble Products: Is There a Difference in the Commissions? At the January national sales meeting,... Kimble Products: Is There a Difference in the Commissions? At the January national sales meeting, the CEO of Kimble Products was questioned extensively regarding the company policy for paying commissions to its sales representatives. The company sells sporting goods to two major markets. There are 40 sales representatives who call directly on large volume customers, such as the athletic departments at major colleges and universities and professional sports franchises. There are 30 sales representatives who represent the company to retail stores located in shopping malls and large discounters such as Kmart and Target. Upon his return to corporate headquarters, the CEO asked the sales manager for a report comparing the commissions earned last year by the two parts of the sales team. The information is reported below. Would you conclude that there is a difference? Be sure to include in the report a graphical description and appropriate descriptive statistics of the two groups. using minitab

Commissions Earned by Sales Representatives Calling on Athletic Departments ($) 354 87 1676 1187 69 3202 680 39 1683 1106 883 3140 299 2197 175 159 1105 434 615 149 1168 278 579 7 357 252 1602 2321 4 392 416 427 1738 526 13 1604 249 557 635 527

Commissions Earned by Sales Representatives Calling on Large Retailers ($) 1116 681 1294 12 754 1206 1448 870 944 1255 1213 1291 719 934 1313 1083 899 850 886 1556 886 1315 1858 1262 1338 1066 807 1244 758 918

Explanation / Answer

Column C4=Atheletic Department, Column C5=Large Retailers

Using Minitab by method of Mann Whitney test

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Mann-Whitney Test and CI: C4, C5

N Median
C4 40 526.5
C5 30 1074.5

Point estimate for 1 - 2 is -493.5
95.0 Percent CI for 1 - 2 is (-700.9,-190.1)
W = 1183.0
Test of 1 = 2 vs 1 2 is significant at 0.0050
The test is significant at 0.0050 (adjusted for ties)

Conclusion :There is difference in commissions.

Minitab Graph

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