A Manager of a Small Store Wanted to Discourage Shoplifters

question 84

Essay

A manager of a small store wanted to discourage shoplifters by putting signs around the store saying "Shoplifting is a crime!" However, he wanted to make sure this would not result in customers buying less. To test this, he displayed the signs every other Wednesday for 8 weeks, for a total of 4 days displayed. He recorded the store's sales for those four Wednesdays and then recorded the store's sales for the four alternate Wednesdays, when the signs were not displayed. On the Wednesdays with the sign, the sales were 83, 73, 81, and 79. On the Wednesdays without the sign, sales were 84, 90, 82, and 84.
Do these results suggest that customers buy less when the signs are displayed? (Use the .05 significance level.)
a. Use the five steps of hypothesis testing.
b. Sketch the distribution involved.
c. Figure the effect size.
d. Explain what you did to a person who is familiar with the t test for a single sample but is unfamiliar with the t test for independent means.

---

Definitions:

Relationship

The way in which two or more concepts, objects, or people are connected, or the state of being connected.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specified period of time, indicating the financial performance of the business.

Gross Profit

The difference between sales and the cost of goods sold, representing the fundamental earning efficiency of a company's core activities.

Payroll Expense

The total amount of money a business pays to its employees as wages or salaries, including taxes and benefits, for a specific period.