A large national chain of department stores wanted to test the effectiveness of a promotional display for a new brand of household appliances. Fifty stores were randomly selected from a total of 263 stores. The sample of 50 stores was randomly divided into two groups of 25 stores each. Only one groups used the promotional display. For three weeks, sales of the new brand of appliances were monitored for both groups.

1. Present the experimental design in diagrammatic form.
2. What analysis technique would you recommend? Why?
3. Assume that the brand manager of a medium-sized manufacturer of consumer products decided. To introduce a new brand of breakfast cereal if. The company can initially acquire 1.5% of the market. The following hypotheses are the be tested:

H0:.

Ha:>.

Explain and discuss the Type I and Type II errors that could occur while testing these hypotheses. What are the implications for the company?