Walking through a case study

To consolidate all that we have learned in this chapter, let’s walk through the example we used at the beginning of the chapter about product promotion on an online store.

Let’s say we have data showing the daily sales volume for the 14 days before the promotion and the 14 days after the promotion. Our hypothesis is that the product’s daily sales have significantly increased following the promotion.

How could we use significance testing to test this hypothesis?

Let’s go through the steps we set out at the beginning of this chapter:

1. Formulate the hypotheses: First, we need to state our null and alternative hypotheses.

   Question: Before reading on, can you try to formulate a null and alternative hypothesis?

   1. Null hypothesis (H0): Our null hypothesis is that there was no significant increase in average daily sales following the promotion.
   2. Alternative hypothesis (H1): Our alternative hypothesis is that there was a significant...