Question
Company XYZ is in the process of evaluating whether it should move to internet sales because a marketing research manager believes that, on average, each
Company XYZ is in the process of evaluating whether it should move to internet sales because a marketing research manager believes that, on average, each internet sale is at least $20 more than a similar sale in stores. If the marketing research manager is right, the company would like to move to internet sales. The company's competitor only offers internet sales, and their average order (based on a sample of 50 orders) is $52 with a variance of $25. Of XYZ's 50 in-store sales orders, the average sale was $30 with a variance of $16. Based on the p-value test and alpha=0.05, what would you advise the company?
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