20. You are looking for a way to incentivize the sales reps that you are in char
ID: 3361044 • Letter: 2
Question
20. You are looking for a way to incentivize the sales reps that you are in charge of. You design an incentive plan as a way to help increase in their sales. To evaluate this innovative plan, you take a random sample of your reps, and their weekly incomes before and after the plan were recorded. You calculate the difference in income as (after incentive plan - before incentive plan). You perform a paired samples t-test with the following hypotheses: Null Hypothesis: D 0, Alternative Hypothesis: D > 0. You calculate a p-value of 0.0446. What is the appropriate conclusion of your test?
Question 20 options:
1)
2)
3)
4)
5)
1)
The average difference in weekly income is significantly less than 0. The average weekly income was higher before the incentive plan.2)
The average difference in weekly income is significantly different from 0. There is a significant difference in weekly income due to the incentive plan.3)
The average difference in weekly income is less than or equal to 0.4)
We did not find enough evidence to say there was a significantly positive average difference in weekly income. The incentive plan does not appear to have been effective.5)
The average difference in weekly income is significantly larger than 0. The average weekly income was higher after the incentive plan.Explanation / Answer
Solution:- option 1) The average difference in weekly income is significantly less than 0. The average weekly income was higher before the incentive plan.
Explanation:-
Since the p-value was small (less than 0.05), the decision is to reject the null hypothesis.
The null hypothesis stated that the mean difference was equal to 0, while the alternative hypothesis stated that it was greater than 0.
Since the null is rejected, the conclusion matches the alternative hypothesis.
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