Name and Section- Srishti Mittal,

Section-B

CASE - Nirmal Pvt. Limited

Nirmal Pvt. Limited is a FMCG company, selling a range of products. It has 1150 sales
outlets. A sample of 60 sales-outlets was chosen, using random sampling for the purpose
of sales analysis. The sample consists of sales-outlets from rural and urban areas
belonging to the four regions of the country- Northern, Eastern, Western, Southern. The
information related to annual sales has been was collected from them in the month of
December 2010. This process has been repeated in December 2011. In the meanwhile, in
2010 a comprehensive sales-promotion program was launched to augment the sales. The
information is presented in the data sheet (Case_Nirmal-Data.xls). Analyze the data and
give answer to the following questions-

(a) Can you conclude that there is significant difference between sales of urban
outlets and rural outlets in 2010?
t-Test: Two-Sample Assuming Equal Variances

2010_Sales Urban shops 2010_Sales Rural shops (Thousand

(Thousand of Rs.) of Rs.)
Mean 63.70967742 64.48275862
Variance 56.01290323 35.9729064
Observations 31 29
Pooled Variance 46.338422
Hypothesized Mean
Difference 0
df 58
t Stat -0.439601042
P(T<=t) one-tail 0.33092987
t Critical one-tail 1.671552763
P(T<=t) two-tail 0.66185974
t Critical two-tail 2.001717468

Ho: µ urban 2010= µ rural 2010

H1: µ urban 2010≠ µ rural 2010
α = 0.5
P=0.66185974>0.5
t-test: Two Sample Assuming equal variances
There is NO significant difference between sales of urban shops and rural shops in
2010
Since tStat < tCritical, therefore Ho stands and H1 is rejected.
 (b) Does the pattern of differentiation between urban and rural outlets remain the
same in 2011 also?
t-Test: Two-Sample Assuming Equal Variances

2011_Sales urban shops 2011_Sales Rural shops

(Thousand of Rs.) (Thousand of Rs.)
Mean 73.41935484 73.89655172
Variance 85.0516129 76.31034483
Observations 31 29
Pooled Variance 80.83169038
Hypothesized Mean
Difference 0
Df 58
t Stat -0.205452292
P(T<=t) one-tail 0.418969082
t Critical one-tail 1.671552763
P(T<=t) two-tail 0.837938163
t Critical two-tail 2.001717468

Ho: µ urban 2011= µ rural 2011

H1: µ urban 2011≠ µ rural 2011
α=0.5
P= 0.837938163>0.5
There is no significant difference between sales of urban and rural shops in 2011
Since tStat< tCritical, therefore Ho stands and H1 is rejected.

(c) Do the data indicate that there is significant increase in the sales in 2011 as
compared to 2010? Comment on the success of the sales-promotion program

t-Test: Two-Sample Assuming Equal Variances

2011_Sales (Thousand of Rs.) 2010_Sales (Thousand of Rs.)

Mean 73.65 64.08333333
Variance 79.51949153 45.70480226
Observations 60 60
Pooled Variance 62.61214689
Hypothesized Mean Difference 0
df 118
t Stat 6.622042621
P(T<=t) one-tail 5.5147E-10
t Critical one-tail 1.657869523
P(T<=t) two-tail 0.000000001102939
t Critical two-tail 1.980272226

Ho: µ 2011= µ 2010

H1: µ 2011> µ 2010
Tstat is more than t critical , therefore H1 stands H0 rejected.
There is significant increase in sales in 2011 than 2010.
Therefore the sales-promotion program is successful.