24. The manager of an automobile dealership is considering a new bonus sales vol

Question

24. The manager of an automobile dealership is considering a new bonus sales volume. Currently, the mean sales volume is 14 automobiles per month. r wants to conduct a research study to see whether the new b onus plan increases sales volume. To collect data on the pla allowed to sell under the new bonus plan for a one-month period. a. Develop the null and alternative hypotheses mo b. Comment on the conclusion when Ho cannot be rejected. c. Comment on the conclusion when Ho can be rejected. n, a sample of sales personnel will be ost appropriate for this situation.

Explanation / Answer

a.)Since we do not particularly care about the decrease in sales under the plan, we have to only form the hypothesis whether the sales have increased or not.

so, it is a single tail test.

Null hypothesis = Ho: µ = 14, no increase in the sales volume due to new bonus plan

Alternative hypothesis = Ha: µ > 14, increases sales volume due to new bonus plan

b.) H0 cannot be rejected if t calculated > t tabulated

or we can say when test statistics is greater than t tabulated (where test statistics = xµ n)

we infer that the new bonus plan does not increase sales volume

c.) when H0 is false,

if  test statistics is less than t tabulated (where test statistics = xµ n)

we infer that the new bonus plan increases sales volume.

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