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    Testing of hypothesis of mean

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    Note: Use the five-step hypothesis testing procedure to solve the following exercises.

    21. The management of Discount Furniture, a chain of discount furniture stores in the Northeast, designed an incentive plan for salespeople. To evaluate this innovative plan, 12 salespeople were selected at random, and their weekly incomes before and after the plan were recorded.

    Was there a significant increase in the typical salesperson's weekly income due to the innovative incentive plan? Use the .05 significance level. Estimate the p-value, and interpret it.

    22. The federal government recently granted funds for a special program designed to reduce crime in high-crime areas. A study of the results of the program in eight high-crime areas of Miami, Florida, yielded the following results.

    Has there been a decrease in the number of crimes since the inauguration of the program? Use the .01 significance level. Estimate the p-value.

    See attached file for full problem description.

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    Solution Summary

    To test if there is significant difference in sales person's weekly salary.