Hypothesis testing is a statistical method applied in making decisions in a particular incidence such as economic and e-commerce. In the current job position as a salesperson, I could use hypothesis testing in deciding the effects of increasing the marketing budget on sales revenue. Using hypothesis testing indicates that the company will have the possibility of improving the level of sales revenue. As a marketing agent collecting information and storing data is an aggressive approach in the market. As a result, hypothesis testing makes it possible to collect data about the market and correctly analyze such data making it possible to analyze and make the right decision before applying allocating budget for improving sales revenue. The effect of the hypothesis test in business decision -making will depend on the level of accuracy in data collection and analysis of the results.
In collecting the data, the sample population would be obtained from the target region. Information will be collected from a sample population of 100 people from a target market region and determine if increasing the marketing budget will increase sales by 25%. This information indicates that the data collected will be a representative of the entire population, and results determine the viability of allocating funds for marketing campaign. The alternative hypothesis (H1) is that funding marketing campaign will increase sales volume by 25%. The null hypothesis (H0) is that increasing marketing campaign does not increase sales volume by 25%. Information will be collected from the sample population by presenting interview questions. For instance, the problem may ask participants if a marketing campaign influences the bran they purchase. The results will be determined depending on the number of yes responses received from the participants. The alternative hypothesis indicates that if the organization raises the amount of money used in marketing, many people will be aware of the products, thus increasing their expenditure on the company’s brand. If the alternative hypothesis value lies within a significant level, there is a statistical relationship between marketing funds and sales. In effect, it will be wise for me to push the company to increase funds for a marketing campaign at the national level. If the value is beyond the significance level, it indicates that there is no statistical relationship between marketing funds and sales volume. As a result, it becomes difficult to push the marketing campaign to the national level.
Delegate your assignment to our experts and they will do the rest.
Confidence interval plays an essential role in determining the possibility that an estimated value includes the real value being calculated. In effect, I can use a confidence interval as a statistical aspect in measuring the impact of market research in an organization. The company invests in research in an attempt to understand how the project will affect the performance of the organization. As a result, the confidence interval becomes a way of assessing the viability of research before allocating funds for the project. The organization I work may need determining the number of products it can make within a particular period, but it becomes challenging to know the real value until the end of the period. In effect, confidence interval becomes an appropriate approach for statistically determining the estimated future sales.
Confidence interval may affect the marketing research by improving the results and decision-making process, thus increasing the level of certainty in predicting the future. In effect, I will collect information by observing and recording information about customers and past sales numbers thus closing the gap between the existing and predicted number of sales and the actual sales volume for a particular period. It is difficult for a company to predict the future reflecting 100% certainty. In determining the interval, market research can assume that it is 95% confidence that the l sales for an upcoming period will lie between 4 million and 6 million there is a chance that the real sales volume will be higher or below 5 per cent. In understanding the number of sales volume likely to be experienced in the future, the company is in a position to make a correct prediction of the products to be sold within a specified time frame.
Regression analysis is an approach used to analyze the relationship between two variables. I would apply both linear, and multiple regression approaches in current job position as a way for predicting the future and avoiding risks likely to face the company. Predicting the future is an essential approach for predicting the future and determining the mechanisms for avoiding the risks likely to be experienced in the company. For instance, the demand for products and services may fail to meet demand in the market, thus causing risks in the business. In this case, there will be consideration of total sales as the dependent variable and order as the independent variable. Consumers will determine the number of customers to determine the number of products they are likely to purchase in the future. In determining the total sales of products to be achieved in the future, several aspects such as the price of the products and that of other related commodities need to be considered.
In the regression analysis approach, total sales will be the dependent variable while demand for products will be the independent variable. Variation in costs, increase in product awareness, and amount of other associated products determine the level of consumption, thus affecting demand in the company. I will collect data to be used in the analysis by surveying the number of shoppers passing in a particular board, therefore using the information obtained to determine the change expected if a specific change occurs. For instance, if the number of customers purchasing products in the company is high, making positive changes increases the number of purchases to be made. For example, an increase in an advertisement or reducing prices increases the number of people making purchases in the business. Marketing approaches and advertisement ensures that people are in a position to predict demand in the future as a result of making a particular change affecting the market.
