Step 1 :We are given that a small business is testing the effectiveness of its radio advertising. They decide to compare the mean number of customers who make a purchase in the store on days immediately following days when the radio ads are played versus those days following days when no radio advertisements are played.
Step 2 :For 10 days following no advertisements, the mean was 23.6 purchasing customers with a standard deviation of 0.9 customers. On 11 days following advertising, the mean was 24.9 purchasing customers with a standard deviation of 1.5 customers.
Step 3 :We are asked to test the claim that the mean number of customers who make a purchase in the store is lower for days following no advertising compared to days following advertising. This is a two-sample t-test problem.
Step 4 :The test statistic for a two-sample t-test is given by the formula: \[ t = \frac{(\bar{X}_1 - \bar{X}_2) - (μ_1 - μ_2)}{\sqrt{\frac{s_1^2}{n_1} + \frac{s_2^2}{n_2}}} \] where: \(\bar{X}_1\) and \(\bar{X}_2\) are the sample means, \(μ_1\) and \(μ_2\) are the population means, \(s_1^2\) and \(s_2^2\) are the sample variances, \(n_1\) and \(n_2\) are the sample sizes.
Step 5 :In this case, we are testing the null hypothesis that \(μ_1 = μ_2\), so the term \((μ_1 - μ_2)\) in the numerator is zero. The given data can be plugged into the formula to calculate the test statistic.
Step 6 :Given: \(n_1 = 10\), \(\bar{X}_1 = 23.6\), \(s_1 = 0.9\), \(n_2 = 11\), \(\bar{X}_2 = 24.9\), \(s_2 = 1.5\)
Step 7 :Substituting these values into the formula, we get the test statistic \(t = -2.4327961883099527\)
Step 8 :Rounding this to three decimal places, we get the final answer: \(\boxed{-2.433}\)