Answer to Question #203708 in Economics for alex

Question

2.  The manager of an automobile dealership is considering a new bonus plan designed to increase sales volume. Currently, the mean sales volume is 14 automobiles per month. The manager wants to conduct a research study to see whether the new bonus plan increases sales volume. To collect data on the plan, a sample of sales personnel will be allowed to sell under the new bonus plan for a one-month period.

A.   Develop the null and alternative hypotheses most appropriate for this situation.

B.     Comment on the conclusion when H0 cannot be rejected.

 Comment on the conclusion when H0 can be rejected.

Answer 1

A. Develop the null and alternative hypotheses that are most appropriate for the given situation.

Zero would be the hypothesis that the average sales volume will be 14 vehicles per month. An alternative hypothesis will be the sale of 20 cars per month.

B. Comment on the conclusion when H0 cannot be rejected. Since staff are only allowed to sell under the bonus plan for one month, this statement is one in which it cannot be rejected under the terms of the experiment.

 Please comment on the output when H0 can be rejected. If the manager will conduct research only on a specific group of employees. it can be rejected.