1. The manager of an automobile dealership is considering a new bonus plan desig
ID: 3229942 • Letter: 1
Question
1. The manager of an automobile dealership is considering a new bonus plan designed to increase sales volume. Currently, the mean sales volume is 14 automobiles per month. The manager wants to conduct a research study to see whether the new bonus plan increases sales volume. To collect data on the plan, a sample of sales personnel will be allowed to sell under the new bonus plan for a one-month period. a) Develop the null and alternative hypotheses most appropriate for this situation. b) Comment on the conclusion when H0 cannot be rejected. c) Comment on the conclusion when H0 can be rejected.
Explanation / Answer
H0 : Null Hypothesis
The sales volume has increased than before [[ U1 >U0]]
H1: Alternative Hypothesis
The Sales volume has decreased or remain same [[ U1 <= U0]]
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b) H0 Can be rejected if sales volume tend to remain same or dip during the data collected by the salesman.Therefore if H0 is accepted that means the sales have grown due to the bonus scheme and is beneficial to the dealership
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c) H0 can be rejected , it means that the bonus plan has no evidence that it is helpign the dealership during that particular month
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