Memo 1 – Two Independent Populations

The memo should be directed to me.

Paragraphs should be short with ample use of bullets.

You work for a group who owns two retail stores. One is located in the suburbs and the other is located in the inner city. They have noticed that sales from the store located in the inner city are less than the suburban store.

Merchandise

• The merchandise sold by both stores consists of normal goods (demand increases with increasing incomes).

Market

• People who frequent their store are couples, usually with children; although some couples can be in their late forties or early fifties with their children away starting their own lives.
• People who own homes spend more money in their store than people who rent.

Advertising Campaign

• They have used similar advertising programs for both stores.
• Their advertising has been aimed at middle class people, who are starting families, to middle aged couples.
• They feel that their advertising dollar yields better results in the suburban store than in the inner city store.
• Their suburban store generates most of their profits.
• Usually, the inner city store is challenged to break-even.

Planning

They want to plan for next year. Among other things, they want to determine:

• Why sales from the inner city store are disappointing?
• What are the determinants of demand in both stores?
• Make suggestions for any potential changes in the advertising campaigns.

Data

• You are provided a random sample of 75 customers from each store.
• You are given how much they spend in the store ($/year), their incomes ($1,000/year), age, and if they are employed or not.
• The store is not able, at this moment, to give you any additional information.

Your analysis should include (in the appendix)

• Descriptive statistics, each graph, each hypothesis must be labeled uniquely so that you can refer to it in the memo. Perhaps, Figure 1, Figure 2, etc.

• Descriptive statistics (on its own page)
• Graphs (at least 2 histograms, 2 bar charts)
  • Print 2 graphs per page
  • Ensure proper formatting and complete titles
• Hypotheses tests (1 per page)
  • Clearly state your hypothesis.
  • For all tests, use a 10% level of significance.
  • If it is possible to conduct the test by computer, do it.
    • Format the output very carefully.
    • Color the cell containing the p-value and t-value (F-value) used to make the decision.
  • If it is not possible to conduct the hypothesis test using the computer, you can do so by using the 6-step method and write it by hand.
  • Clearly state your conclusion

Price: $19.74

Solution: The downloadable solution consists of 14 pages, 574 words and 13 charts.
Deliverable: Word Document