Explain the applications and limitations of statistical hypothesis testing as applied to business situations.
Company W is testing a sales software. Their sales force of 500 people is divided into four regions: Northeast, Southeast, Central and West. Each sales person is expected to sell the same amount of products. During the last 3 months, only half of the sales representatives in each region were given the software program to help them manage their contacts.
The VP of Sales at WidgeCorp, who is comfortable with statistics, wants to know the possible null and alternative hypotheses for a non-parametric test on this data using the chi-square distribution. A non-parametric test is used on data that is qualitative or categorical, such as gender, age group, region, and color. It is used when it doesn’t make sense to look at the mean of such variables.
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