Part 3 (30 marks)

Daniella is continuing her evaluation of the data from the MyCakes shop. She found a file containing the price paid for each chocolate cake over the previous year (see the sheet named 'Part 3 - Revenues').

Mr Sweet also gave her the data collected from a survey of 50 potential customers on the price they might pay for one of the cakes (see the sheet named 'Part 3 - Survey'). Daniella would like to evaluate if it is viable to set the price at 26 per cake, or even at 30 per cake.

Part 3a

Using the data provided, determine if clients are willing to pay more than 26 per cake with a 95% confidence interval. Determine also if that remains true if charging more than 30 per cake. Perform a Cohen's d test to further understand the difference between the means of the price data (see the sheet named 'Part 3 - Revenues') and the survey data (see the sheet named 'Part 3 - Survey').

(15marks)

Part 3b

Discuss the results of your analysis considering the different outcomes, and present them in a form suitable for a business audience. Include a discussion on the risk of Type II errors in this analysis.

Revenue data gives:

Price paid
Mean	25.69917828
Standard Error	0.034152489
Median	26
Mode	26
Standard Deviation	2.555281806
Sample Variance	6.52946511
Kurtosis	-1.050932887
Skewness	-0.221387665
Range	9
Minimum	21
Maximum	30
Sum	143864
Count	5598
	1
Price paid
Confidence Level(95.0%)	0.066952126

Survey data gives:

Survey data
Mean	27.14
Standard Error	0.64776539
Median	27
Mode	29
Standard Deviation	4.580392996
Sample Variance	20.98
Kurtosis	-1.289605019
Skewness	0.15819321
Range	15
Minimum	20
Maximum	35
Sum	1357
Count	50
	1
Survey data
Confidence Level(95.0%)	1.301733286