Reference no: EM132844415

Question: A marketing manager for a grocery store chain is wondering whether dairy products sell more if the dairy section is located in the central part of the store than if the dairy section is in the rear part of the store. To consider relocating the dairy? products, the manager feels that the increase in the mean amount spent by customers must be at least 21 cents. To determine whether relocation is? justified, her staff selected a random sample of 25 customers at stores in which the dairy section is central in the store. A second sample of 25 customers was selected in stores with the dairy section at the rear of the store. The following sample results were observed. Complete parts a and b below.

Central Dairy Rear Dairy
x1=?$3.77 x2=?$3.32
s1=?$0.86 s2=?$

a. Conduct a hypothesis test with significance level α=0.01 to determine if the manager should relocate the dairy products in those stores displaying their dairy products in the rear of the store. Assume both samples are from normally distributed populations with equal variances.

Let μ1 denote the mean amount spent when the dairy section is in the center of the store and let μ2 denote the mean amount spent when the dairy section is in the rear of the store. What are the null and alternative? hypotheses?

H0?: μ1-μ2≤?$0.21
HA?: μ1-μ2&?$0.21

The test statistic is : 1.07

What is p-value?

How to calculate p-value? What is the procedure?