Average Amount Mall Customers Spend on Food - Statistics Paper Example

Since Tstat > Tcritical, we reject the null hypothesis that suggests that average amount mall customers spend on food during a visit did not increase and instead accept the alternative hypothesis which postulates that average amount mall customers spend on food during a visit increased.

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Compute p-value and determine whether it can be accepted or rejected

Coefficients P-value

Intercept 19.77278691 3.31735E-41

X Variable 1 0.003162219 0.831370828

P -value = 3.31735E-41

The p-value for the test using one-tail was 3.31735E-41 meaning that it was significant since it was less than a = 0.05 which is the significance level. Thus, the claim that the average amount of money spent on food during a visit increased should be accepted on the basis of the p-value.

Analysis and Discussion

Accept or reject the hypothesis

Since Tstat>Tcritical (10.42484566> 1.652585784), we reject the null hypothesis which states that The average amount mall customers spend on food did not increase and instead accept the alternative hypothesis which posits that the average amount mall customers spend on food increased.

Are you confident that the statistics which show that the food has increased/decreased or remained the same?

Regression Statistics

Multiple R 0.021563002

R Square 0.000464963

Adjusted R Square -0.009734374

Standard Error 4.275199155

Observations 100

Significance.

The significance of the data is 0.83 which is higher than 0.05 implying that the results are not significant. From the statistics, there is no strong relationship as explained by the variable since the r2 is way below and closer to 0 than it is to 1. Only 0.9 percent of change in food is explained by each customer.

Recommend actions to the food courts owners based on your findings.

Based on the findings, the number of customers interviewed should be increased and hence the sample should be increased. This will help increase validity of the data and significance of the information. Also, more improved method of collection of data at Elbonia mall should be used. Given the fact that the data was not significant, a higher significance level should be used hence probably 0.1.

References

Anderson, D. R., Burnham, K. P., & Thompson, W. L. (2000). Null hypothesis testing: problems, prevalence, and an alternative. The journal of wildlife management, 912-923.

Conrad Carlberg,(2008). Business Analysis with Microsoft Excel, Pearson Education, 3rd Ed

Jank, W. (2011). Business Analytics for Managers. Springer.

Newey, W. K., & McFadden, D. (1994). Large sample estimation and hypothesis testing. Handbook of econometrics, 4, 2111-2245.