Question
The management of Discount Furniture, a chain of discount furniture stores in the Northeast, designed an incentive plan for salespeople. To evaluate this innovative plan,
The management of Discount Furniture, a chain of discount furniture stores in the Northeast, designed an incentive plan for salespeople. To evaluate this innovative plan, 12 salespeople were selected at random, and their weekly incomes before and after the plan were recorded.
Salesperson | Before | After |
1 | $300 | $360 |
2 | 290 | 285 |
3 | 562 | 475 |
4 | 450 | 510 |
5 | 310 | 450 |
6 | 402 | 429 |
7 | 625 | 631 |
8 | 560 | 540 |
9 | 750 | 775 |
10 | 431 | 439 |
11 | 506 | 625 |
12 | 412 | 519 |
Was there a significant increase in the typical salesperson's weekly income due to the innovative incentive plan? Use the .10 significance level.
Show the steps of calculations (Steps in Hypothesis Testing)
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