The Owner of a Small Clothing Store Is Concerned That

question 43

Essay

The owner of a small clothing store is concerned that only 28% of people who enter her store actually buy something. A
marketing salesman suggests that she invest in a new line of celebrity mannequins (think Seth Rogan modeling the latest
jeans…). He loans her several different "people" to scatter around the store for a two-week trial period. The owner carefully
counts how many shoppers enter the store and how many buy something so that at the end of the trial she can decide if she'll
purchase the mannequins. She'll buy the mannequins if there is evidence that the percentage of people that buy something
increases.
-What alpha level did the store's owner use?

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Definitions:

Revenue

The total income generated by a company from its business activities, such as sales of goods or services, before any expenses are deducted.

Trial Balance

A financial statement that lists the balances of all ledgers accounts to ensure that debits equal credits.

Transaction Recorded

The act of documenting a business transaction in the company's accounting records.

Debit

A debit is an accounting entry that results in either an increase in assets or a decrease in liabilities on a company's balance sheet, or in the context of personal banking, a withdrawal from an account.