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    Compare incentive plans using testing of hypothesis.

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    A) Cash back when the consumer makes an online purchase or
    B) Cash back when the consumer makes a purchase at a clothing store

    Dilemma: I don't know whether consumers would shop online more than at clothing stores.

    I've been placed in a group to develop null and alternative hypotheses to help the bank determine which option would provide the best incentive to consumers. Then, I must write a brief memo to the bank product development team describing your hypotheses and explaining how you arrived at them.

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    Solution Preview

    As part of our study, I have conducted a sample survey of 100 consumers to know their preferences. I was interested to know whether consumers would prefer to shop online to shop at the clothing store. A random sample of 100 consumers were picked up and were asked 'Do you prefer to shop online or at the clothing store? '. Out of 100 ...