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A company attempts to evaluate the potential for a new bonus plan by selecting a sample of 4 salespersons to use the bonus plan for a trial period. The weekly sales volume before and after implementing the bonus plan is shown below. (For the following matched samples, let the difference "d" be d = after - before.)
a.State the hypotheses.
b.Compute the test statistic.
c.Use Alpha = .05 and test to see if the bonus plan will result in an increase in the mean weekly sales.
Real Rate of Return
The annual percentage return realized on an investment, which is adjusted for changes in prices due to inflation or other external effects.
Dividends
Profits disbursed by a business to its equity shareholders, usually generated from the company's financial gains.
Inflation
Inflation is the rate at which the general level of prices for goods and services is rising, eroding purchasing power.
Standard Deviation
A statistical measure that indicates the variability or volatility of a set of data points.
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