At JoJo\'s donuts, JoJo and Puck are looking at the data from last year\'s sales

Question

At JoJo's donuts, JoJo and Puck are looking at the data from last year's sales in their two store locations, the home store and satellite store. JoJo took a random sample of 50 daily sales totals from last year at each store. Look, JoJo said, looking at the average sales for each store. "The satellite store has significantly higher sales than the home store." "Wait," said Puck. "We do not know that unless we run a test of statistical significance comparing the two stores." Explain why Puck and JoJo need to rely on statistical significance testing rather than rely just on the averages.

Explanation / Answer

statistical significance testing gives us the entire statistics such as the money spent, sales and every expenditure. Only then we can understand if the store is running in profits or not. Even though the store has high sales than the other, it does not mean that the store is running in profits because the investment might be high than the other. Hence they need to rely on statistical significance testing before coming to a conclusion.

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