Promotional Campaigns The General Manager of a Chain of Fast Food Chicken

question 156

Essay

Promotional Campaigns
The general manager of a chain of fast food chicken restaurants wants to determine how effective their promotional campaigns are.In these campaigns "20% off" coupons are widely distributed.These coupons are only valid for one week.To examine their effectiveness,the executive records the daily gross sales (in $1,000s)in one restaurant during the campaign and during the week after the campaign ends.The data is shown below. ​ ​
-{Promotional Campaigns Narrative} Can they infer at the 5% significance level that sales increase during the campaign?

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Definitions:

Straight-Line Method

A method of calculating depreciation or amortization by evenly dividing the asset’s cost over its useful life.

Salvage Value

The estimated residual value of an asset at the end of its useful life, expected to be recovered after its use is completed.

Monthly Depreciation

The portion of an asset’s cost that is expensed each month over its useful life.

Old Plant Asset

An asset that has been in use for a considerable period and is often nearing the end of its useful life.