The notion of statistical significance is frequently used in

The notion of statistical significance is frequently used in business to distinguish between true and spurious between-group differences (such as a difference between the response rates to two different promotions). Hence, when the difference between the baseline (no promotional stimulus) and promotion-stimulated brand purchase rate is statistically significant, such results are often interpreted as being indicative of the impact of the promotion of interest. Do you agree with this rationale? Why or why not?

Justify your answers with examples and reasoning.

Solution

Yes i agree with the rationale because statistics gives an edge while making any decision through is calculation and predictiction through the data.

if we take the example of promotion of product for sales then we can get an indication how the sales of an product increased with the promotion of an product then the time when there was no promotion, also by making the prediction through the sales of previoud month the management can get an idea for how much minimum quantity they need to produce to counter the demand in the market. also in the conflicting times when we have to choose in between two products the statistics tells the management by which product the company will have more profit and also how to manage that. hence the rationale is true.