With an alpha level of .05, construct a hypothesis test to see if there is a difference in sales during the fiscal period.
Contingency Table
A contingency table can be defined as the visual representation of the relationship between two or more categorical variables that can be evaluated and registered. It is a categorical version of the scatterplot, which is used to investigate the linear relationship between two variables. A contingency table is indeed a type of frequency distribution table that displays two variables at the same time.
Binomial Distribution
Binomial is an algebraic expression of the sum or the difference of two terms. Before knowing about binomial distribution, we must know about the binomial theorem.
Due to the Coronavirus Pandemic, major apparel industries like Nike took historical losses in 2020. Entering 2021, Nike has closely been monitoring sales of long-standing shoe re-releases, whose current sales determine if Nike will continue to produce them. Nike’s new re-release of the Air Max 97 SE and Nike Air Force 1s has helped their sales jump significantly early in 2021. Nike wants to calculate both sales numbers for the year, and compare them to last year’s performance during the same fiscal quarters. Over the past 14 weeks, Nike recorded an average of 5.7 million sales this fiscal quarter with a standard deviation in sales of .65 million for Air Max 97 SE. Nike’s Air Force 1s recorded an average of 6.2 million sales with a standard deviation of 1.3 million in sales.
With an alpha level of .05, construct a hypothesis test to see if there is a difference in sales during the fiscal period.
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