A marketing manager for a chain of brake shops was considering two different ser

Question

A marketing manager for a chain of brake shops was considering two different services for an in-store promotion: a wheel alignment or an oil change. She wanted to know if there was different demand for these services, before deciding which promotion to run nationally. She test marketed the wheel alignment promotion in ten shops in Cleveland, and the oil change promotion in ten shops in Detroit. She recorded the following sales of the two promotions:

a. State the null and alternate hypotheses in plain English sentences (not equations).

b. Using Excel or any statistical package you are familiar with, do a direct comparison of two means to determine if there is a significant difference between the sales of the two services. Print out the computer results.  

c. Can you reject the null hypothesis? Why or why not?

SHOP NO WHEEL ALIGNMENT IN CLEVELAND OIL CHANGE IN DETROIT 418 422 433 415 485 410 412 400 402 410 434 435 470 435 430 429 432 421 425 399 6 10

Explanation / Answer

SolutionA:

Null Hypothesis:

there is no significant difference in means between the sales of the two services,wheel alignment in cleveland and

oil change in detroit

Alternative Hypothesis:

there is significant difference in means between the sales of the two services,wheel alignment in cleveland and

oil change in detroit.

Alpha=0.05

Solutionb:

using Excel

Data >data analysis>t test Two sample Assuming Unequal Variances

Solutionc

test statistic

t=-1.083

p=0.2948

p>0.05

Fail to Reject Null hypothesis.

Accept null hypothesis.

Conclusiin:

there is no significant difference in means between the sales of the two services.

t-Test: Two-Sample Assuming Unequal Variances Wheel Allignment
in cleveland Oil Change in Detroit Mean 420.7 431 Variance 601.1222 303.1111111 Observations 10 10 Hypothesized Mean Difference 0 df 16 t Stat -1.08317 P(T<=t) one-tail 0.147393 t Critical one-tail 1.745884 P(T<=t) two-tail 0.294787 t Critical two-tail 2.119905

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