Question

Comparing Data

This activity will help you meet these educational goals:
You will validate a statistical model for a given situation based on the data and draw inferences based on the model.

Activity

Every year, a pet food company sells its food to stores across the nation. Some of these stores are new customers, and some are returning customers. The company has set a strategic initiative for the new year to increase the proportion of its sales to new stores. The sales director is conducting research to determine whether the company’s sales representatives need additional field training to accomplish the company’s goals. Based on experience from the previous year, the sales director has constructed a model. This model reflects projections of the breakdown of sales orders for the new year, specific to the company’s sales regions. The model is shown in the table.

Percentage of Sales Goals
	Current Stores	New Stores
Midwest	85%	15%
South	74%	26%
Northeast	83%	17%

During the first month of the new year, the sales director collected data on the sales orders for sales representatives within each region. Assume that sales representatives work in only one region.

First Month’s Sales
	Current Stores	New Stores
Midwest	362	66
South	197	115
Northeast	250	60

Part A

In the first month of the new year, the Midwest region secured sales orders from 362 current stores and 66 new stores. Is this data consistent with the sales director’s mo

Part B

In the first month of the new year, the South region secured sales orders from 197 current stores and 115 new stores. Is this data consistent with the sales director’s model?

Part C

Suppose the strategy of the pet food company is to increase the proportion of sales orders from new stores in each region to 25% during the new year. Consider the data and proportions of sales from new stores from each region in the first month. Do you think additional field training is necessary for all of the sales representatives? Why or why not?

Answer 1