Low Price Leader

1
Low Price Leader

• By
• Jesse Stondell
• Shelly Lemus

2
What We Did
In order to find out which grocery store is
really the low price leader we formed a list
using common grocery items from a group of six
random people . Using the list of 32 items, we
choose 3 major chain stores, Safeway in
Placerville, Albertsons in Golden Center Plaza,
and Raleys on Placerville Dr., as our sample.
They are meant to be representative of the
population of all chain stores in the Placerville
area.
3
Hypothesis

• Our hypothesis is that Safeways prices are
  cheaper than Albertsons and Raleys.

4
Method

• To collect our data we visited the three stores
  and found the items on the list.
• At the first store we randomly selected a name
  brand for each item and recorded the price. The
  same name brand was used at the other stores.

5
Shopping List
6
Raleys Prices
7
Safeway Prices
8
Albertsons Prices
9
Statistics
10
Accumulative Price Per Store
11
Normal CurveFor S Vs. A.

• Null Hypothesis ?s?a
• Alternate Hypothesis ?s??a Safeway
  is cheaper than Albertsons.
• Nonpooled z-test for Two Populations result
  z.037

?s?a
12
Normal CurveFor S Vs. A.

• Null Hypothesis ?s?r
• Alternate Hypothesis ?s??r Safeway
  is cheaper than Raleys.
• Nonpooled z-test for Two Populations result
  z.108

?s?r
13
Conclusion

• Reject Alternate Hypothesis
• In our sample there was not a significant
  difference in price between Safeway, Albertsons,
  and Raleys.

14
Suggestion for Further Study

• For a further study, more accurate results might
  be obtained by using only non-sale prices and a
  larger sample size.