Confidence interval for the increase in sales

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Reference no: EM132479430

No interesting real-world story on this one. Just an activity to drill on computations.

The Sirius Cybernetics Corporation is the nation's leading manufacturer of solar powered flashlights. They wish to test the effectiveness of a proposed new advertising campaign, to make sure that it is successful before spending millions of dollars on a nationwide launch of the campaign. Accordingly, they identify ten test markets of comparable size. They run the campaign in five of the markets (randomly selected), and don't in the other five. They collect data on the number of units sold in each market. The five markets with the campaign sold an average of 4242 solar powered flashlights, with a standard deviation of 846. The five control markets sold an average of 2424 solar powered flashlights, with a standard deviation of 648.

a) Give a 95% confidence interval for the increase in sales, per market, from running the ad campaign.

b) Conduct an appropriate hypothesis test to investigate whether the ad campaign actually increased sales.

Reference no: EM132479430

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