Business owners like to know how their decisions will affect their business. Bef
ID: 3129834 • Letter: B
Question
Business owners like to know how their decisions will affect their business. Before making decisions, owners may explore the benefits of hypothesis testing. By making such tests, they can have more confidence in their decisions
One example is Joe Smith who is testing to see whether the company's gym shoe will have a significant difference on weight loss. If the company markets this shoe and finds that it does not cause weight loss as expected, they may want to consider their marketing strategy or dropping the campaign all together. What is a scenario of how hypothesis testing can be used in the business world? Looking back on your scenario, what decisions can managers make to help improve their company. When it comes to relating sample results to the population, can we make our decisions using the sample value?
Explanation / Answer
AS THE GYM IS TRYING TO MARKET THE GYM SHOE TO KNOW ABOUT ITS VIABILITY THE HYPOTHESIS TESTING CAN BE USED LIKE TAKING THE SAMPLE OF SOME CUSTOMERS WHO COME TO GYM AND GIVE THEM THE SHOE ON TRIAL BASIS AND TAKE THE PROPER MEASUREMENTS OR THERE WEIGHT AFTER SPECIFIED TIME, NOTING THE LOSS IF ANY IN ALL THE CUSTOMERS AND TAKING THE OVER ALL AVERAGE OF WEIGHT LOSS, IS THERE IS ANY SIGNIFICANT IMPACT IN WEIGHT LOSS THEN THE GYM SHOULD MARKET THE SHOES AND IF THE SHOES IS NOT MAKING ANY EFFECT THEN THE COMPAIGN SHOULD BE LEFT ALL TOGETHER.
THE MANAGER CAN ALSO TAKE THE VIEW BY THE SAMPLE THAT HOW MORE THEY CAN PUT EFFORT IN THERE SHOES SO THAT THEY CAN SHOW BETTER RESULTS BY SHOES.
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