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1. Suppose Burger King has run a major advertising campaign in the hopes of incr

ID: 3233390 • Letter: 1

Question

1. Suppose Burger King has run a major advertising campaign in the hopes of increasing monthly sales. To investigate the effectiveness of this campaign, Burger King randomly selected six restaurants and recorded the monthly sales before and after the advertising. The following data represents these sales figures in thousands of dollars.

If Population 1 is defined as sales after the advertising campaign and Population 2 is defined as sales before the advertising campaign, and using = 0.05, which one of the following statements is true?

D. Because the p-value is less than , we cannot conclude that the average restaurant sales per month after the advertising campaign are higher than the average restaurant sales per month before the advertising campaign.

2. AutoTrader.com would like to test if a difference exists in the age of three different types of vehicles currently on the road--trucks, cars, and vans. The following data represent the age of a random sample of trucks, cars, and vans.

A. Because the p-value is greater than , we cannot conclude that the average restaurant sales per month after the advertising campaign are higher than the average restaurant sales per month before the advertising campaign. B. Because the p-value is greater than , we can conclude that the average restaurant sales per month after the advertising campaign are lower than the average restaurant sales per month before the advertising campaign. C. Because the p-value is less than , we can conclude that the average restaurant sales per month after the advertising campaign are higher than the average restaurant sales per month before the advertising campaign.

D. Because the p-value is less than , we cannot conclude that the average restaurant sales per month after the advertising campaign are higher than the average restaurant sales per month before the advertising campaign.

2. AutoTrader.com would like to test if a difference exists in the age of three different types of vehicles currently on the road--trucks, cars, and vans. The following data represent the age of a random sample of trucks, cars, and vans.

Trucks Cars Vans 12 8 3 8 7 7 9 10 6 11 7 8
Using = 0.05, the conclusion for this hypothesis test would be that because the test statistic is A. less than the critical value, we can conclude that there is a difference in the average age of trucks, cars, and vans currently on the road. B. more than the critical value, we cannot conclude that there is a difference in the average age of trucks, cars, and vans currently on the road. C. less than the critical value, we cannot conclude that there is a difference in the average age of trucks, cars, and vans currently on the road. D. more than the critical value, we can conclude that there is a difference in the average age of trucks, cars, and vans currently on the road. Restaurant 1 After $123 $122 $145 $156 $160 $134 Before $107 $110 $143 $168 $145 $125

Explanation / Answer

1)

A. Because the p-value is greater than , we cannot conclude that the average restaurant sales per month after the advertising campaign are higher than the average restaurant sales per month before the advertising campaign.

2)

before After difference(d) 107 123 16 110 122 12 143 145 2 168 156 -12 145 160 15 125 134 9 mean 7.000 std deviaition 10.5830 sample size 6.0000 std error= std dev/(n)^(1/2) 4.3205 t stat= (d)/std error 1.6202 p value = 0.0831