Hypothesis Testing to Increase Significance
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1. To illustrate a production or marketing example: A company stats that is produces cookies with 50 chocolate chips per cookie. A sample of 36 cookies has an average of 49 chips with a standard deviation of 5 chips. Do we have a problem with our advertising claim of 50 chips per cookie (assume a confidence level of 95%)?
2. For a human resource example, stoges'slipper fitting service created an incentive plan for staff. To evaluate this dynamic plan, 4 staff members were selected at random, and their weekly incomes before and after the plan were recorded.
Salesperson before After
Curley $320 $340
larry 290 285
moe 421 475
Cinderella 510 510
was there a significant increase in the typical salespersons weekly income due to the innovative incentive plan? Use the .05 significant level.
Where do I start? We are comparing means for pairs of values. We desire to know the differences in the pairs.
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Solution Summary
The hypothesis testing to increase significance level is determined. The solution compares means for pairs of values.
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Please see the attached file.
1. To illustrate a production or marketing example: A company stats that is produces cookies with 50 chocolate chips per cookie. A sample of 36 cookies has an average of 49 chips with a standard deviation of 5 chips. Do we have a problem with our advertising claim of 50 chips per cookie (assume a confidence level of 95%)?
Solution:
Let's setup a two-tailed test. Since the sample size is big (>30), this is a z-test.
H0:
H1:
Test statistic:
Critical values: , where ...
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