# Using the Hypothesis

Test in Excel To Find

Out If Your Advertising

Really Worked

This article will explain how to use Excel to perform a Hypothesis Test to analyze an advertising campaign. Specifically, we will show how to use Excel to perform One-Tailed, Two-Sample, Paired Hypothesis Test of Mean to determine whether an advertising campaign improved really sales.

This Hypothesis Test tests the Null Hypothesis that the advertising campaign did not improve sales.

The advantages of statistical analysis in Excel to solve business statistics problems is that most problems can be solved in just one or two steps and there is no more need to look anything up on Normal Distribution tables.

Here is the problem:

**Problem: Determine with 95% certainty whether an advertising campaign increased average daily sales to our large dealer network. Before and After samples of average daily sales were taken with at least 30 dealers.**

Here is the Before and After data for all of the dealers:

Before we begin solving this problem, we need to know whether we are dealing with normally distributed data. If the data is not normally distributed, we have to use nonparametric statistical tests to solve this problem.

**Always Test for Normality First**

Normality tests should be performed on the before and after sales data. Both data sets must be normally distributed to perform the well-known hypothesis test that is based upon the underlying data being normally distributed. This blog has numerous articles about how to perform normality testing and nonparametric testing if the data is not normally distributed.

__The MOST Important Step__

Determine What Type of Hypothesis

Determine What Type of Hypothesis

Test You Will Perform

Test You Will Perform

**1) Hypothesis Test of Mean or Proportion?**

We know that this is a

**test of mean**and not proportion because

**each individual sample taken can have a wide range of values:**Any sales sample measurement from 90 to 250 is probably reasonable.

**2) One or Two-Tailed Hypothesis Test?**

We know that this is a

**one-tailed test**because we are trying to

**determine if the "After Data" mean sales is larger than the "Before Data"**mean sales, not whether the mean sales are merely different.

**3) One or Two-Sample Hypothesis Test?**

We know that

**two samples**need to be taken because no data is initially available.

**4) Paired or Unpaired Hypothesis Test?**

This is

**paired data**because each set of "Before" and "After" data came from the same object.

In this case, we are performing a

**to determine whether an advertising campaign improved really sales. We will do this test in Excel. It is extremely important to establish the type of Hypothesis test. Each type of Hypothesis test uses a slightly (or very) different methodology and set of formulas.**

__One-Tailed, Two-Sample, Paired Hypothesis Test of Mean__In this case, the yellow-highlighted column represents the difference between the Before and After sample of each data pair. The Hypothesis test will be performed on that column of data.

Above is the data sample:

Paired Hypothesis Tests involve taking Before and After samples from the same large number (n is greater than 30) of objects and performing a Hypothesis test on the differences between the Before and After samples.

**Initial Parameters Needed**

Before we can begin the Hypothesis test, we need to calculate the following parameters of variable x:

**Sample size**- Use Excel function

**COUNT**

**- Use Excel function**

Sample mean

Sample mean

**AVERAGE**

**Sample standard deviation**- Use Excel function

**STDEV**

**Sample standard error**= (Sample standard deviation) / SQRT (Sample size)

**Difference Data**

We need to make the following calculations on the data that represents the difference between the Before and After data:

x

**avg**= "Difference Data" sample average = 9.60

S

**xavg**= Sample standard error = 1.11

n = "Difference Data" Sample size = 30

α = Level of Significance = 0.05 because there is a 5% max chance of error allowed.

Therefore a 95% Level of Certainty Required

**The Four-Step Method That Solves**

__ALL__Hypothesis Tests**Step 1 - Create the Null and Alternate Hypotheses**

The Null Hypothesis normally states that both populations sampled are the same. If the mean sales from both the Before and After Data are the same, then their average difference = 0

**avg**= 0

**avg**is greater than 0

For this one-tailed test, the Alternative Hypothesis states that the value of the distributed variable xavg is larger than the value of 0 stated in the Null Hypothesis,

**OR**is less than (Constant)

Two-tailed test - (Value of variable) does not equal (Constant)

**Step 2 - Map the Normal Curve**

**avg**.

**avg**= 0, the Normal curve will map the distribution of the variable xavg with a mean of x

**avg**= 0.

**Step 3 - Map the Region of Certainty**

**95%**,

**1-tailed**= NORMSINV(1 - α) = NORMSINV(

**0.95**) = 1.65

*Excel Note - NORMSINV(x) = The number of standard errors from the Normal curve mean to a point right of the Normal curve mean at which x percent of the area under the Normal curve will be to the left of that point. Additional note - For a one-tailed test, NORMSINV(x) can be used to calculate the number of standard errors from the Normal curve mean to the boundary of the Region of Certainty whether it is in the left or the right tail.***avg**= 0 by 1.65 standard errors.

**xavg**= 1.11, so:

**95%**,

**one-tailed*** s

**xavg**

**avg**= 0

**a) Critical Value Test**

**avg**, falls inside or outside of the Critical Value, which is the boundary between the Region of Certainty and the Region of Uncertainty.

**avg**, falls within the Region of Certainty, the Null Hypothesis is not rejected.

**avg**, falls outside of the Region of Certainty and, therefore, into the Region of Uncertainty, the Null Hypothesis is rejected and the Alternate Hypothesis is accepted.

**avg**= 9.60 and is therefore to the right of (outside of) the outer right Critical Value (1.83), which is the boundary between the Regions of Certainty and Uncertainty in the right tail.

*Click On Image To See Larger Version*

b) p Value Test

b) p Value Test

**xavg**= 1 - NORMSDIST( [ x

**avg**- µ ] / s

**xavg**)

*Excel note - NORMSDIST(x) calculates the total area under the Normal curve to the LEFT of the point that is x standard errors to the right of the Normal curve mean. Since we are calculating the area to the RIGHT of that point, we use 1 - NORMSDIST.***xavg**= 1 - NORMSDIST((9.60 - 0 ) / 1.11) = 1 - NORMSDIST(9.60/1.11) ≈ 0

*Click Image To See Larger Version******************************************

Using the Hypothesis Test in Excel to Find Out If Your Advertising Worked

**If You Like This, Then Share It...**

Strategically pitching and up selling: Sales is an absolute necessity. Any business needs them by snares or law breakers to turn its income cycle. data science course in pune

ReplyDeleteWell, the most on top staying topic is Data Science. Data science is one of the most promising technique in the growing world. I would like to add Data science training to the preference list. Out of all, Data science course in Mumbai

ReplyDeleteis making a huge difference all across the country. Thank you so much for showing your work and thank you so much for this wonderful article.

Just saying thanks will not just be sufficient, for the fantastic lucidity in your writing. I will instantly grab your articles to get deeper into the topic. And as the same way ExcelR also helps organisations by providing data science courses based on practical knowledge and theoretical concepts. It offers the best value in training services combined with the support of our creative staff to provide meaningful solution that suits your learning needs

ReplyDeleteNice Post...I have learn some new information.thanks for sharing.

ReplyDeleteExcelR data analytics course in Pune | business analytics course | data scientist course in Pune

Thanks for sharing your valuable information to us, it is very useful.

ReplyDeletedigital marketing course

Such a very useful article. I have learn some new information.thanks for sharing.

ReplyDeletedata scientist course in mumbai

Pretty good post. I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. Any way I’ll be subscribing to your feed and I hope you post again soon.

ReplyDeleteData science course in mumbai

Excelr is providing emerging & trending technology training, such as for data science, Machine learning, Artificial Intelligence, AWS, Tableau, Digital Marketing. Excelr is standing as a leader in providing quality training on top demanding technologies in 2019. Excelr`s versatile training is making a huge difference all across the globe. Enable ?business analytics? skills in you, and the trainers who were delivering training on these are industry stalwarts. Get certification on "

ReplyDeletebest data science course in hyderabad"and get trained with Excelr.

Such a very useful Blog. Very interesting to read this article. I have learn some new information.thanks for sharing. know more about

ReplyDeleteThis is also a very good post which I really enjoyed reading. It is not every day that I have the possibility to see something like this..

ReplyDeleteExcelR data analytics

This is a wonderful article, Given so much info in it, These type of articles keeps the users interest in the website, and keep on sharing more ... good luck.

ReplyDeleteExcelR Business Analytics Course

Very nice blog here and thanks for post it.. Keep blogging...

ReplyDeleteExcelR data science training

Attend The PMP Certification in Abu Dhabi From ExcelR. Practical PMP Certification in Abu Dhabi Sessions With Assured Placement Support From Experienced Faculty. ExcelR Offers The PMP Certification in Abu Dhabi.

ReplyDeleteExcelR PMP Certification in Abu Dhabi

This is a wonderful article, Given so much info in it, These type of articles keeps the users interest in the website, and keep on sharing more ... good luck.

ReplyDeleteExcelR data analytics courses

Glad to chat your blog, I seem to be forward to more reliable articles and I think we all wish to thank so many good articles, blog to share with us. excelr data science

ReplyDeleteI have to search sites with relevant information on given topic and provide them to teacher our opinion and the article.

ReplyDeleteExcelR data analytics courses

Great Article

ReplyDeleteData Mining Projects

Python Training in Chennai

Project Centers in Chennai

Python Training in Chennai

This is a wonderful article, Given so much info in it, These type of articles keeps the users interest in the website, and keep on sharing more ... good luck.

ReplyDeletedata analytics course mumbai

I am a new user of this site so here i saw multiple articles and posts posted by this blog,I curious more interest in some of them hope you will give more information on this topics in your next articles.

ReplyDeleteData Scientist course

ReplyDeleteThere is obviously a lot to know about this. I think you made some good points in Features also. Keep working, great job!.... data science course Bangalore

You actually make it look so easy with your performance but I find this matter to be actually something which I think I would never comprehend. It seems too complicated and extremely broad for me. I'm looking forward for your next post, I’ll try to get the hang of it!

ReplyDeleteExcelR Data Analytics Course

Data Science Interview Questions

I want to say thanks to you. I have bookmark your site for future updates. ExcelR Data Scientist Course Pune

ReplyDeleteI have to search sites with relevant information on given topic and provide them to teacher our opinion and the article.

ReplyDeletedata analytics courses

business analytics course

data science interview questions

data science course in mumbai

keep up the good work. this is an Ossam post. This is to helpful, i have read here all post. i am impressed. thank you. this is our machine learning courses in Mumbai

ReplyDeletemachine learning courses in Mumbai | https://www.excelr.com/machine-learning-course-training-in-mumbai

This is a wonderful article, Given so much info in it, Thanks for sharing. CodeGnan offers courses in new technologies and makes sure students understand the flow of work from each and every perspective in a Real-Time environmen python training in vijayawada. , data scince training in vijayawada . , java training in vijayawada. ,

ReplyDeleteI like viewing web sites which comprehend the price of delivering the excellent useful resource free of charge. I truly adored reading your posting. Thank you!

ReplyDeletebusiness analytics course

data analytics courses in mumbai

data science interview questions

data science course in mumbai

This is a wonderful article. I really enjoyed reading this article. Thanks for sharing such detailed information.

ReplyDeleteData Science Course in Marathahalli

If your looking for Online Illinois license plate sticker renewals then you have need to come to the right place.We offer the fastest Illinois license plate sticker renewals in the state.

ReplyDeletedata science course

360DigiTMG

The information provided on the site is informative. Looking forward more such blogs. Thanks for sharing .

ReplyDeleteArtificial Inteligence course in Aurangabad

AI Course in Aurangabad

The web site is lovingly serviced and saved as much as date. So it should be, thanks for sharing this with us.

ReplyDeletedata science course

360DigiTMG

Thank you so much for sharing this excellent information. I am glad to discover your post.

ReplyDeleteHadoop Training in Hyderabad

wonderful article. Very interesting to read this article.I would like to thank you for the efforts you had made for writing this awesome article. This article resolved my all queries.

ReplyDeleteData science Interview Questions

Hi, Thanks for sharing nice articles...

ReplyDeleteDevOps Training In Hyderabad

Hi, Thanks for sharing nice articles...

ReplyDeleteAI Training In Hyderabad

wonderful article. Very interesting to read this article.I would like to thank you for the efforts you had made for writing this awesome article. This article resolved my all queries.

ReplyDeleteData Science Course

Attend The Digital Marketing Courses in Bangalore From ExcelR. Practical Digital Marketing Courses in Bangalore Sessions With Assured Placement Support From Experienced Faculty. ExcelR Offers The Digital Marketing Courses in Bangalore.

ReplyDeleteDigital Marketing Courses in Bangalore

ReplyDeleteYou have explained the concept really well. Was looking for this information from a while & luckily I stumbled upon your post. Looking forward for more of such informative updates from you

Data Science Training In Hyderabad

Data Science Course In Hyderabad

Good Article, the information you provided is helpful for me

ReplyDeleteData Science Training In Hyderabad

Nice post. Thanks for sharing! It’s interesting content and Great work.

ReplyDeleteAI Training in Hyderabad

wonderful article. Very interesting to read this article.I would like to thank you for the efforts you had made for writing this awesome article. This article resolved my all queries. keep it up.

ReplyDeletedata analytics course in Bangalore

Hi, Thanks for sharing nice articles...

ReplyDeleteData Science Training In Hyderabad

This comment has been removed by the author.

ReplyDeleteVery interesting to read this article.I would like to thank you for the efforts you had made for writing this awesome article. This article inspired me to read more. keep it up.

ReplyDeleteCorrelation vs Covariance

Cool stuff you have and you keep overhaul every one of us

ReplyDeleteCorrelation vs Covariance

Hi, Thanks for sharing wonderful blog post...

ReplyDeleteData Science Training In Hyderabad

More Information of ExcelR Your work is very good, and I appreciate you and hopping for some more informative posts

ReplyDeleteI just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. ExcelR Data Science Courses Any way I’ll be subscribing to your feed and I hope you post again soon. Big thanks for the useful info.

ReplyDeleteAttend The Data Science Courses Bangalore From ExcelR. Practical Data Science Courses Bangalore Sessions With Assured Placement Support From Experienced Faculty. ExcelR Offers The Data Science Courses Bangalore.

ReplyDeleteData Science Courses BangaloreYou should have a great deal of pride recorded as a hard copy quality substance. I'm dazzled with the measure of strong data you have written in your article. I want to understand more.

ReplyDeleteSEO services in kolkata

Best SEO services in kolkata

SEO company in kolkata

Best SEO company in kolkata

Top SEO company in kolkata

Top SEO services in kolkata

SEO services in India

SEO copmany in India

Thank a lot. You have done excellent job. I enjoyed your blog . Nice efforts

ReplyDeleteData Science Certification in Bangalore

Very interesting to read this article.I would like to thank you for the efforts you had made for writing this awesome article. This article inspired me to read more. keep it up.

ReplyDeleteCorrelation vs Covariance

Simple linear regression

I wish that I could take a thought, investigate it like you, and put it in writing in a similar manner that I have quite recently perused. Your thoughts are incredible.

ReplyDeleteOnline Teaching Platforms

Online Live Class Platform

Online Classroom Platforms

Online Training Platforms

Online Class Software

Virtual Classroom Software

Online Classroom Software

Learning Management System

Learning Management System for Schools

Learning Management System for Colleges

Learning Management System for Universities

Very useful post. This is my first time i visit here. I found so many interesting stuff in your blog especially its discussion. Really its great article. Keep it up.

ReplyDeleteData Science Course in Bangalore

I really enjoyed reading this post, big fan. Keep up the good work andplease tell me when can you publish more articles or where can I read more on the subject?

ReplyDeleteData Science Training in Bangalore

Good To Share Information With Us Thanks For Sharing

ReplyDeleteHadoop Training in Hyderabad

Hadoop Course in Hyderabad

I feel really happy to have seen your web page and look forward to so many more entertaining times reading here. Thanks once more for all the details.

ReplyDeleteData Science Training in Hyderabad | Data Science Course in Hyderabad

You are in point of fact a just right webmaster. The website loading speed is amazing. It kind of feels that you're doing any distinctive trick. Moreover, The contents are masterpiece. you have done a fantastic activity on this subject!

ReplyDeleteLearn best training course:

Business Analytics Course in Hyderabad

Business Analytics Training in Hyderabad

After reading your article I was amazed. I know that you explain it very well. And I hope that other readers will also experience how I feel after reading your article.

ReplyDeleteData Science Certification in Bangalore

You completed certain reliable points there. I did a search on the subject and found nearly all persons will agree with your blog.

ReplyDeleteData Science Course

I am a new user of this site so here i saw multiple articles and posts posted by this site, I curious more interest in some of them hope you will give more information on this topics in your next articles.

ReplyDeleteData Science Training

Awesome blog. I enjoyed reading your articles. This is truly a great read for me. I have bookmarked it and I am looking forward to reading new articles. Keep up the good work!

ReplyDeleteData Science Course in Pune

Data Science Training in Pune

Nice blog. I finally found great post here Very interesting to read this article and very pleased to find this site. Great work!

ReplyDeleteData Science Training in Pune

Data Science Course in Pune

I feel very grateful that I read this. It is very helpful and very informative and I really learned a lot from it.

ReplyDeleteData Analytics Course in Pune

Data Analytics Training in Pune

I am impressed by the information that you have on this blog. It shows how well you understand this subject.

ReplyDeleteBusiness Analytics Course in Pune

Business Analytics Training in Pune

Very interesting to read this article.I would like to thank you for the efforts you had made for writing this awesome article. This article inspired me to read more. keep it up.

ReplyDeleteCorrelation vs Covariance

Simple linear regression

data science interview questions

I just stumbled upon your blog and wanted to say that I have really enjoyed reading your blog posts. ExcelR Data Scientist Course In Pune Any way I’ll be subscribing to your feed and I hope you post again soon. Big thanks for the useful info.

ReplyDeleteNice Post. Very informative Message and found a great post. Thank you.

ReplyDeleteBusiness Analytics Course in Pune

Business Analytics Training in Pune

Very interesting to read this article.I would like to thank you for the efforts you had made for writing this awesome article. This article inspired me to read more. keep it up.

ReplyDeleteCorrelation vs Covariance

Simple linear regression

data science interview questions

Very interesting blog. Many blogs I see these days do not really provide anything that attracts others, but believe me the way you interact is literally awesome.You can also check my articles as well.

ReplyDeleteData Science In Banglore With Placements

Data Science Course In Bangalore

Data Science Training In Bangalore

Best Data Science Courses In Bangalore

Data Science Institute In Bangalore

Thank you..