Researchers for an advertising company are interested in determining if people are more likely to spend...

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Researchers for an advertising company are interested indetermining if people are more likely to spend more money on beerif advertisers put more beer ads on billboards in a neighborhood inPhiladelphia. They estimate that 250 people will view theirbillboard in one week. They determine that the total number ofresidents in the neighborhood is 600. So, the residents who havenot viewed the billboard are in the control group. The researchersdetermine that those who did view the ads spent $24 per week onbeer and those who did not view the ads spent $16 per week onbeer.
Calculate the treatment effect.
Calculate the standard error (hint: the researchers determinedthe Std. Dev. for the control is $1.3 and the Std. Dev. for thetreatment is $0.90)
Calculate the t-statistic.
Can we reject OR fail to reject the null hypothesis? Explainwhy.

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4.2 Ratings (860 Votes)

Given For Control N 350 mean 16 standard deviation 13 For Test N 250 mean 24 standard deviation 09 A treatment effect increase in salesoriginal sales 24 1616 50 There is 50 lift in sales or the treatment effect is 50 B Since the See Answer

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