hypothesis…………………………………

Based off the attached data, I need help with the following (2) questions.

A) One of your assistants notes that the market that you are considering entering is located in the

southern part of the nation. She asserts that “everyone knows that southerners eat lots of snack

cakes.” You note that in your data set, Atlanta and Dallas are the only two cities that are in the

“South” census district. Can you test you assistant’s hypothesis that “southerners eat lots of snack

cakes”? If so, is she correct? If so, how many more snake cakes do Southerners eatthan their

comparable non-southerners? SHOW YOUR WORK .(hint: use a dummy variable)

Do Southerners eat more stack cakes than non-Southerners?

YESorNO(circle one)

If “Yes”, how many more? They eat _________________ more cakes.

B) Ignore the issue about Southerners in (A). Instead, one of your assistants suggests that there is a

significant seasonal effect on the consumption of snack cakes. Specifically, he suggests that

“people each more snack cakes during that holiday season (October through December)”. Can

you test you assistant’s hypothesis? If so, is she correct? If so, how many more snack cakes do

they eat doing the holiday season? SHOW YOUR WORK.(hint: use a dummy variable)

Do we sell more stack cakes during the holiday season?

YESorNO(circle one)

If “Yes”, how many more? They eat _________________ more cakes.

 

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