1.) Marketing communications are an important part of generating incremental rev
ID: 3326592 • Letter: 1
Question
1.) Marketing communications are an important part of generating incremental revenue. The marketing communications department has been tasked with developing a campaign that would drive incremental revenue. They wish to test if the marketing campaign generated incremental sales compared to a group that did not get the offer. Please see data table below. Use significance level of 0.1. (30 points, 5 points each)
Received Offer
Did not receive offer
Customer ID
Revenue
Customer ID
Revenue
1
60
13
80
2
70
14
70
3
60
15
60
4
80
16
60
5
90
17
60
6
100
18
90
7
60
19
80
8
70
20
90
9
70
21
50
10
70
22
50
11
80
23
40
12
60
24
60
25
70
26
70
27
70
2. )What is the treatment in the study and the study design?
3.) Write the null hypothesis for the study in mathematical notation and interpret in ONE sentence.
4.) Write the alternative hypothesis for the study in mathematical notation and interpret in ONE sentence.
5.) Is this a 1 or 2-tailed test? Why?
6.) Calculate the appropriate test statistic. Show all work. Write out a p-value analysis and state the interpretation/conclusion from the analysis. In other words, did the campaign work?
7. ) What would be the minimum difference in response rates at alpha = 0.1 to reject the null hypothesis. Show work.
8.) In order to account for selection bias in a sample, a sampling scheme is defined and the appropriate analysis is conducted before an intervention is administered. A complex clinical trial is considered where a drug is tested to adults who are diabetic but can be controlled without insulin administration. It had been determined that they wish to test the existing method of diabetic control (without insulin) with a new method that involves the use of a drug called Metformin. Clinical researchers and study designers decided that they need to stratify based on age and gender only. For age, they wished to look at ages (<=50, 51 – 70, and 71+ years of age), gender (male, female) and BMI (obese, overweight, normal, underweight). Based on this analysis, determine the following:
Devise a sampling scheme and label all strata. Include a test and control group for the actual analysis of the drug’s effectiveness. (+10 points)
Received Offer
Did not receive offer
Customer ID
Revenue
Customer ID
Revenue
1
60
13
80
2
70
14
70
3
60
15
60
4
80
16
60
5
90
17
60
6
100
18
90
7
60
19
80
8
70
20
90
9
70
21
50
10
70
22
50
11
80
23
40
12
60
24
60
25
70
26
70
27
70
Explanation / Answer
1.
The data represents the sales revenues of the 12 customers who received offers and that of the 15 customers who did not receive offers.
The researcher wants to test if the marketing campaign generated incremental sales revenues compared to a group that did not receive offers.
2.
The treatment in this study is marketing designs offers.
The study design is independent two samples wherein the two samples are those which received offers and those which did not receive offers.
3.
Let u1 and u2 be the mean sales revenues of the samples group that received offers and the group that did not receive offers respectively.
Then the null hypothesis is : u1 = u2
Which means that the mean sales revenues of the group that received marketing campaign offers and the group that did not receive offers are equal.
4.
The alternate hypothesis is : u1 > u2
Which means that the marketing campaign generated incremental sales compared to a group that did not get the offer.
5.
This is a one sided test.
Since we want to test whether the mean sales of the marketing campaign group and the group that did not receive offers is equal against the alternative that the marketing campaign generated incremental sales compared to a group that did not get the offer.
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.