Apple Hypothesis Testing Review
Statistical Testing: Hypothesis Test
The statistical analysis for this research focused on using the Z test to compare each more specified region to the national average. Thus, the data was divided into specific region, West, Midwest, Northeast, and South. Each one of these regions was then tested to the total national numbers. This helps illustrate more regional trends and how Apple should focus its marketing of its new product for each of the specified regions. Ultimately this research assumes that there should be no significant differences between the likes and dislikes of Apple based on region, considering the company's widespread national popularity. To test this, a two-tailed Z test was used with a significance level set at 0.05.
The first scenario to be tested was the category of the number of customers interested and willing to purchase. First was the West. Customers who showed interest in purchasing compared to the national average. The Z-score was set at -5.2569. The p value was set at 0. Here, the result of the test shows that there is a significant difference between the West and the national average. The Midwest had a Z score of 0.431, with a p value of 0.6672. In this regard, the result is not significant, and there is not a huge change in demand compared to the national average. Next, the Northeast had a Z score of 1.5851 and a p value of 0.11184. This illustrates that there is not a significant difference compared to the national average. Finally, the South had a Z score of 3.3313, with a p value of 0.00086. This suggests that there is a significant difference between the region and the national average. Clearly, in the West, buyers are more willing to purchase products than anywhere in the nation, while the South shows less enthusiasm.
Next was the scenario of customers who were interested, but not willing to purchase. In the West, the Z score here was at -0.311 with a p value of 0.75656. This suggests that there is not a significant difference when comparing the results to the national average. For the Midwest, the Z score is -2.1521 with a p value of 0.03156, showing that the Midwest had significantly different responses for this category. The Northeast showed a Z test of -3.3577 with a p value of 0.00078. Thus, this region has significantly different responses. The South also had significantly different responses, with a Z score of 6.189 and a p value of 0. Generally, the Northeast shows interest in the products, but are unwilling to buy, which is dangerous because it could suggest the potential for marketing to be wasted in the region because of the illusion of consumer interest.
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