# Rev: Oct 10, 2011

Exercise 2 (McClave): Par, Inc.
Prior to doing this exercise it is strongly advised prior to doing this exercise read
Chapter 7 (especially section 7.2) and:

 FAQ: Lesson 11: When to use Z and t plus sigma unknown(Located in FAQ
Conference AND Here as an attached file).
 FAQ: Lesson 7: Test for independence.
 FAQ : Lesson 4: Statistical inference and hypothesis testing
 FAQ: Lesson 14: Independent Sampling versus paired/matched (dependent)
 Review: Module 4!

Use the attached Excel file to do the analysis but you will submit in the assignment
area a Word document which is your management report to the CEO (me in this
case) and the Excel file with your calculations. Your Word file should be a well-
written analysis of the questions below. Do label your headings as follows:

In each of the above headings you will answer the corresponding question # below.
Please use this format to avoid losing points on the assignment by not labeling as
shown above.

In this exercise you will not need the numeric and graphic statistics except specified
in the instructions. From my experience, you should be able to do the assignment
in two pages or less but a paragraph will probably be insufficient.

Background
Par, Inc., manufactures golf equipment. Management believes that Par's market
share could be increased with the introduction of a cut-resistant, longer-lasting golf
ball. Therefore, the research group at Par investigates a new golf ball coating
designed to resist cuts and provide a more durable ball. The tests with the coating
show promising results.
One of the researchers, Bill voiced concern about the effect of the new coating
on driving distances. Par 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 the 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 design. The results of the tests, with
distances measured to the nearest yard, follow. These data are available in the data
set Golf.

Note: Assume the two population standard deviations are equal but are not known.
Also assume you are dealing with two separate populations.

Assignment Questions (Managerial Report):

1. Formulate and present the rationale for a hypothesis test that Par could use to
compare the driving distances of the current and new golf balls.