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T-Test Sample Activity and Answer

Burger King conducted an advertising campaign across 7 restaurants to increase monthly sales. A t-test of correlated samples was used to analyze monthly sales data before and after the campaign. The t-test results showed no significant difference in means between pre-campaign (mean = 1140) and post-campaign (mean = 1153.333333) sales with a p-value of 0.057, above the significance level of 0.05. Therefore, the null hypothesis that there was no increase in monthly sales after the campaign cannot be rejected. In conclusion, the advertising campaign was not shown to be an effective way to significantly increase monthly sales.

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Keen Jongdae EXO-L
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109 views3 pages

T-Test Sample Activity and Answer

Burger King conducted an advertising campaign across 7 restaurants to increase monthly sales. A t-test of correlated samples was used to analyze monthly sales data before and after the campaign. The t-test results showed no significant difference in means between pre-campaign (mean = 1140) and post-campaign (mean = 1153.333333) sales with a p-value of 0.057, above the significance level of 0.05. Therefore, the null hypothesis that there was no increase in monthly sales after the campaign cannot be rejected. In conclusion, the advertising campaign was not shown to be an effective way to significantly increase monthly sales.

Uploaded by

Keen Jongdae EXO-L
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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T-TEST SAMPLE ACTIVITY AND ANSWER

Suppose Burger King has run a major advertising campaign in the hope of increasing monthly
sales. To investigate the effectiveness of this campaign, Burger King randomly selected 7
restaurants and recorded the monthly sales before and after the advertising. The following data
represents this sales figures in Philippine peso.
Before 1123 1122 1145 1156 1160 1134
After 1150 1110 1160 1170 1180 1150

Problem Statement

Is there a significant increase of the restaurant’s monthly sales from the recorded before and
after advertising campaign?

Hypotheses

Ho: There is no significant increase of the restaurant’s monthly sales from the recorded
before and after advertising campaign.

Ha: There is a significant increase of the restaurant’s monthly sales from the recorded before
and after advertising campaign.

Choice of Test Statistics

a: T-test of correlated samples, a=0.05

Computation
t-value: -2.46
p-value: 0.057

Before After  
1123 1150  
1122 1110  
1145 1160  
1156 1170 0.028713612
1160 1180  
1134 1150  

t-Test: Paired Two Sample for Means    


     
  Variable 1 Variable 2
Mean 1140 1153.333333
Variance 266 586.6666667
Observations 6 6
Pearson Correlation 0.855618518  
Hypothesized Mean Difference 0  
df 5  
t Stat -2.457180467  
P(T<=t) one-tail 0.028713612  
t Critical one-tail 2.015048373  
P(T<=t) two-tail 0.057427224  
t Critical two-tail 2.570581836  
Decision rule & Findings

Decision Rule: Reject Ho if level of significance (a) > p-value

Findings: a (0.05) < p-value (0.057)

Decision

Reject the null hypothesis

Interpretation

There is a significant increase of the restaurant’s monthly sales from the recorded before and
after advertising campaign.

Conclusion

The conducted advertising campaign was an effective methodology in order to increase the
monthly sales of the restaurants. Suppose, Burger King should follow the said course of
action.

Implication

An advertising campaign is a multi-media plan that is used to effectively increase everything including
brand awareness to sales within a certain market.

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