DECSCI2

Business Case # 1
Tests of Hypotheses
GENERAL DIRECTIONS: Provide your answers in typewritten format printed in short bond
papers, using font style Times New Roman, font size 12, and 1.5 line-spacing. Use PHStat2 to
answer the following questions and be able to provide outputs to support your answers
PAR, INC.
Par, Inc. is a major manufacturer of golf equipment. Management believes that Pars
market share could be increased with the introduction of a cut-resistant, longer-lasting golf ball.
Therefore, the research group at Par has been investigating a new golf ball coating designed to
resist cuts and provide a more durable ball.
One of the researchers voiced concern about the effect of the new coating on driving
distances. Par, Inc. would like the new cut-resistant ball to offer driving distances comparable to
those of the current-model golf ball. To compare the driving distances for the two balls, 40 balls
of both the new and current models were subjected to distance tests. The testing was performed
with a mechanical hitting machine so that any difference between the mean distances for the two
models could be attributed to a difference in the two models. The results of the tests, with
distances measured to the nearest yard, are given in the Golf.xlsx file.
MANAGERIAL REPORT:
1.) Formulate and present the rationale for a hypothesis test that Par, Inc. could use to compare
the driving distances of the current and new golf balls.
2.) Provide descriptive statistical summaries of the data for each model.
3.) Analyze the data to provide the hypothesis testing conclusion. Use a 5% level of significance.
What is the p-value for your test? What is your recommendation for Par, Inc.?
SUBMISSION DEADLINE: October 7, 2015 (C35); October 8, 2015 (C34)

Business Case # 1
Tests of Hypotheses
submitted to the Faculty of the
Decision Scienes and Innovation Department
RVR-College of Business
De La Salle University- Manila
In Partial Fulfilment of course requirements in
DECSCI2
Section C34

Submitted by:
Gullab, Aina Marie R.
11333464
Submitted to:
Sir Robert Neil Leong

October 8, 2015

The management at Par Inc. believes that with a cut- resistant, longer lasting golf ball
could increase their market share. A new golf ball coating designed to resist cuts and provide a
more durable ball have been developed and tested. A sample of 40 balls of both the new and
current models was tested with a mechanical hitting machine so that any difference between the
mean distances for the two models. Therefore, the hypothesis test that Par could use to compute
the driving distances of the current and new golf balls is formulated as follows.
It is set to be a two-tailed test which refers to the difference between the mean distances.
Here, refers to the mean driving distance of the new golf ball. When the difference between the
mean distances is equal to 0, therefore, the null hypothesis rejected. This shows that the new golf
ball is better.
With the formula to get the test of Goodness of fit and independent, the value of the test
statistic s was computd. This is a necessary step to