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Statistical Inference
A retailer believes that its new advertising strategy will increase sales. Previously, the mean spending in 15 categories of consumer items in both the 18-34 and 35+ age groups was $70.00. (For all hypothesis tests, assume the level of significance is 0.05).
Formulate a hypothesis test to determine if the mean spending in these categories has statistically increased.After the new advertising campaign was launched, a marketing study found that the mean spending for 300 respondents in the 18-34 age groups was $75.86, with a standard deviation of $50.90. Is there sufficient evidence to conclude that the advertising strategy significantly increased sales in this age group?
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