Management Question
A manufacturer of artistic paints has two different types of acrylic paint products that are very similar in production costs, pricing, size, and type of customer who purchases them. As such, they have determined that they are duplicating efforts, so they plan to stop producing one of them. They have decided to stop producing the paint that is purchased less often per month.A manufacturer of artistic paints has two different types of acrylic paint products that are very similar in production costs, pricing, size, and type of customer who purchases them. As such, they have determined that they are duplicating efforts, so they plan to stop producing one of them. They have decided to stop producing the paint that is purchased less often per month.t-Test: Two-Sample Assuming Unequal VariancesPaint 1Paint 2Mean3.6111112.375Variance6.9575169.05Observations1816Hypothesized Mean Difference0df30t Stat1.266788P(T?t) one-tail0.107489t Critical one-tail1.697261P(T?t) two-tail0.214978t Critical two-tail2.042272Please explain in plain business language what the output tells you. What would you say to the manufacturer, who has asked you whether there is a difference in the average number of monthly purchases per customer for each of the paints?
