You are interested in a new method of advertising. In order to test the new procedure they have tested it in eleven markets with the following sales in thousands of dollars: $124; $157; $98; $190; $103; $135; $149; $176; $200; $180; and $256. You also used eleven control markets, which had the following sales in thousands of dollars: $142, $158, $97, $212, $116, $135, $150, $184, $209, $180, and $269. With a significance level of 0.05; use hypothesis-testing techniques to decide if the new technique is better than the old.
a. What is the independent variable (2 points)?
b. What is the dependent variable (2 points)?
c. What are the null and alternate hypotheses (4 points)?
d. What is the appropriate test statistic (2 points)?
e. What is the value of the test statistic (2 points)?
f. With a significance level of .05 what would be your decision (4 points)?
This solution is an example of an independent samples t-test for comparing the means of two populations.