A company sells its product line in traditional brick and mortarstores as well an online store site. Historically, 42% of allcompany sales took place through its online store site. Due torecent budget cuts, the company has had to cut back on advertisingexpenditures that promote the online store site. You would like todetermine if there has been a DECREASE in the proportion of salescoming from the online store site since the time you reduced youradvertising expenditures. Therefore, the null and alternativehypotheses are:
                              Â
                               H0: proportion of online sales ≥42%        (no decrease inonline sales proportion)
                               H1: proportion of online sales <42%        (decrease inonline sales proportion)
You take a sample of 84 days and record what proportion of saleswere online and what proportion were offline (in a traditionalbrick and mortar store). You utilize Minitab to create theanalytics. The Minitab output is shown below.
Test and CI for One Proportion:ONLINE/OFFLINE
Method
Event: ONLINE/OFFLINE = ONLINE |
p: proportion where ONLINE/OFFLINE = ONLINE |
Exact method is used for this analysis. |
Descriptive Statistics
N | Event | Sample p | 95% Upper Bound
for p |
84 | 34 | 0.404762 | 0.500299 |
Test
Null hypothesis | Hâ‚€: p = 0.42 |
Alternative hypothesis | Hâ‚: p < 0.42 |
Find the p-value on the Minitab output. At a 95%confidence level, what is your conclusion regarding whether or notyour company has experienced a decrease in the proportion of salescoming from the online store site. Justify your conclusion usingthe analytics.
