Exercise 1
A retail chain is interested in determining whether a digital point-of-purchase display would stimulate higher sales for an advertised brand than would a standard point-of-purchase (POP) display. To test this, a one-shot static
two-group design experiment was conducted over a four-week period in 100 different stores. Two-week sales were measured at the beginning and at again at the end of the four weeks for both the control group (standard display) and the experimental group (digital display).
So, there are 100 stores. Sales were measured at all 100 stores when standard POP display was being used everywhere. That variable is labeled (StandardPOP), it shows average daily sales of the two-weeks. In some stores standard POP display was replaced with digital POP display. After 4 weeks, two-week sales were again recorded for all 100 stores. That variable is labeled (DigitalPOP), it shows average daily sales of the two-weeks after the digital display had been in experimental stores for four weeks.
Compare the sales of the control group (standard POP) to those of the experimental group (digital POP) using an independent sample t-test. Based on your output, answer the following questions.
1. In the beginning, what were the average sales for the standard POP display (control group)? What about the digital display (experimental group)?
2. At the end of the four weeks, what were the average sales for the standard POP display (control group)? What about the digital display (experimental group)?
3. What is the mean difference in sales between the control group and the experimental group in the beginning and at the end of the four-week period?
4. At a 95% confidence level, was the difference significant between control group and experimental group?
a. At the start of the experiment
b. At the end of the four-week period
c. Explain why or why not?
5. Should the manager of the retail chain install new digital displays? Justify your answer. What other factors should the manager consider?
Exercise 2
Another retail outlet tested a digital POP display using a one-group pretest-posttest design. The data are in the file “POP Display – Pretest Posttest Dealing with Data 2”. With this experiment, the retailer measured the sales of a regular POP display for two weeks prior to the experiment. The standard POP display was replaced with the digital display in the 59 stores, and two-week sales were measured again after another four weeks. Use a paired sample t-test to compare sales before and after the new digital display. Based on your output, answer the following questions.
1. What were the average sales for the four weeks prior to the experiment?
2. What were the average sales during the four weeks when the stores used the digital display?
3. At a 95% significance level, was the difference in sales (Prior to the experiment and after the experiment) significant? Explain why or why not.
4. Should the manager of the retail chain install new digital displays? Justify your answer.
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