# T-test for Means

Deb is the owner of Deb's Pizza Palace - an establishment that prides itself on preparing healthy but delicious pizzas sold by the slice. She is currently selling pizzas in a small shop on Monroe Ave. in Corvallis, but is considering an expansion of her current business to other campuses and needs help making this decision. She's collected some data and asks you to help her analyze and present it to the Small Business Administration loan officer who will either reject her proposal or provide funding for the proposed expansion.

Each of the following worksheets has a data set and one or more questions. Analyze the data, answer the questions, and report your conclusions and recommendations in a 1-2 page business memo for Deb.

The memo should be supported with your charts, tables, graphs, and anything else necessary to explain your results. And, please keep the memo as jargon-free as possible since Deb doesn't remember.

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Set up a model to test whether there are differences in mean satisfaction between groups. Use an alpha of .05

Can you suggest a different methodology to test whether the ad campaign is effective?

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#### Solution Preview

Set up a model to test whether there are differences in mean satisfaction between groups. Use an alpha of .05

We need to use a two-sample, two-tailed t-test to compare the mean sales of pizzas sold with the ad campaign and pizzas sold without it.

Step 1: Specify the null and alternative hypotheses.

Null hypothesis: The average number of pizzas sold is the same in both groups; Âµ1 = Âµ2

Alternative hypothesis: The average number of pizzas sold differs between the groups; Âµ1 ≠ Âµ2

Step 2: Select a significance level.

We will use the 0.05 ...