A Web-based retailer wishes to measure whether pay-per-click advertising using Google AdWords results in higher daily sales. To do so, it signs up for an 80-day free trial period.a.In the first 80 days of using AdWords, the retailer had average sales of $600,000 per day, with a standard deviation of $40,000. Before using AdWords, the retailer had an average sales revenue of $595,000 per day. Is the sample evidence sufficient to conclude that the daily sales revenue has increased? To answer this question, perform a hypothesis test at α= 0.05. State the alternative and null hypotheses, compute the observed significance level (p-value), and state the conclusion of your test. b.In the first 20 days of using AdWords, the retailer had average sales of $625,000 per day, with a standard deviation of $27,000. Is the sample evidence from these 20 days sufficient to conclude that the daily sales revenue has increased from the historical mean of $595,000 per day? To answer this question, perform a hypothesis test at α= 0.05. State the alternative and null hypotheses, compute the observed significance level (p-value), and state the conclusion of your test.c.What assumptions are necessary for the conclusions of the hypothesis tests in parts a and/or b to be valid? Explain in 2 to 3 sentences.d.The retailer has the option of extending its AdWords subscription beyond the 80-day free trial period. Based on all the sample evidence, should the retailer continue using AdWords? Explain your answer, and resolve any apparent contradictions with your answers to parts a and b. (Hint: has the daily revenue stayed constant over time?)
A Web-based retailer wishes to measure whether pay-per-click advertising using Google AdWords results in higher daily sales. To do so, it signs up for an 80-day free trial period.a.In the first 80 days of using AdWords, the retailer had average sales of $600,000 per day, with a standard deviation of $40,000. Before using AdWords, the retailer had an average sales revenue of $595,000 per day. Is the sample evidence sufficient to conclude that the daily sales revenue has increased? To answer this question, perform a hypothesis test at α= 0.05. State the alternative and null hypotheses, compute the observed significance level (p-value), and state the conclusion of your test. b.In the first 20 days of using AdWords, the retailer had average sales of $625,000 per day, with a standard deviation of $27,000. Is the sample evidence from these 20 days sufficient to conclude that the daily sales revenue has increased from the historical mean of $595,000 per day? To answer this question, perform a hypothesis test at α= 0.05. State the alternative and null hypotheses, compute the observed significance level (p-value), and state the conclusion of your test.c.What assumptions are necessary for the conclusions of the hypothesis tests in parts a and/or b to be valid? Explain in 2 to 3 sentences.d.The retailer has the option of extending its AdWords subscription beyond the 80-day free trial period. Based on all the sample evidence, should the retailer continue using AdWords? Explain your answer, and resolve any apparent contradictions with your answers to parts a and b. (Hint: has the daily revenue stayed constant over time?)
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