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Your company is interested in a new method of advertising. In order to test the new procedure they have tested it in eleven markets with the following sales in thousands of dollars: $124; $157; $98; $190; $103; $135; $149; $176; $200; $180; and $256. The old mean sales value for these markets was $140,000. Use hypothesis-testing techniques to decide if the new technique will generate higher sales.

a. What is the independent variable ?

b. What is the dependent variable ?

c. What are the null and alternate hypotheses?

d. What is the appropriate test statistic?

e. What is the value of the test statistic?

f. With a significance level of .05 what would be your decision ?

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