Case Study 7—Measuring Differences in Pre- and Postincident Sales Using Two Sample t-Tests versus Regression Models
Summary
The chapter contrasts two tools that can be applied to a lost profits case to test the assertion of plaintiff. The two tools in question are t-Test Two Sample using Unequal Variance Tool and Regression Models. Exploratory data analysis graphs the data in form of scatterplot, histogram, box plot, stem-and-leaf plot or any other graph. These two tools are applied in this case study to test the assertion that sales has been falling is a result of the actions of the claimant. The extent of such fall is significant as well and has to be determined employing quantitative measures. Henceforth, comparisons between the pre-incidental sales and post-incidental sales are drawn by making the two available tools as mentioned before.