Q 4. Coles supermarket facing increase competition from cheaper supermarkets dec

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Q 4. Coles supermarket facing increase competition from cheaper supermarkets decided to move to self-checkout (the customer check outs the product himsel/hersel) instead of the traditional checkout stand managed by Coles supermarket personnel. The management of Coles supermarket conducted a test to determine if the average purchase through the self-checkout facility was the same as the average purchase at the traditional checkout stand. e analyst took a sample of 125 customer transactions at the self-checkout stand and another 125 transactions from the traditional checkout stand. Assume alpha 0.025 and z critical 2.24. Results Self-checkout average $45.68 standard deviation-$58.20 Traditional checkout average s 78.49 standard deviation s62.45 32.810 Difference Standard error 7.635 95% CI z-statistic Significance level P

Explanation / Answer

a) H0 : Average purchase through the self -checkout facility was same as the average purchase at the traditional check out stand.

H1 : average purchase through the self check out facility was different from the average purchase at the traditional check out stand.

b) z stat > z critical

We reject H0

Also

P < 0.0001 , the result is significant.

So we reject H0.

c) we conclude that , the average purchase through the self check out facility is different from the average purchase at the traditional check out stand.

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