Analysis:

 Sample size = 30
 The summary is described as below:

Histogram of Old Scheme and New Scheme is demonstrated below:

 Both the samples are normally distributed but Old scheme data seems to be more normally
distributed.
 CASE STUDY

 Question a and b:
 Level of significance=0.05
 The sample size is N= 30 which is sufficient for Zstat Test but since
the population standard deviation is unknown, we will use Tstat
Test.
 Degree of Freedom: Since both the samples are same, the degree
of freedom is N-1=29
 Hypothesis Formulation: Using the Tstat Test
H0 = µold - µnew = 0 (New Scheme did not raise the output)
H1 = µold - µnew < 0 (New Scheme raised the output)

 Conclusion of the test: The p value= 0.06529 which is greater than

0.05. So we accept the Null Hypothesis which means the New
Scheme did not raise the output significantly.

 Question c: Reservations
 After comparing the means of the two samples we can see that
even though it seems New Scheme has fared better, statistically it
is not true.
 The variance of New Scheme i.e 579 is 38% more than the
variance of Old Scheme which is 418.45
 Sampling error of the data is not predictable
 The scheme is fairly expensive for the company but they are trying
to compensate it by increase in sales. The agreement with the
sales force if the scheme does not least break even for the
company, it will be abandoned after 6 months. So, the company
should wait for at least 2 months.
  And also from the histogram of New Scheme we can see that
there is a skew which means the sales department might have
booked all their sales at the earlier part of the period.

 Question d:
 Alternate Hypothesis µ(New Scheme) - µ(Old Scheme)= µd = 5000
is true
 Null Hypothesis µ(New Scheme) - µ(Old Scheme)=0
 Probability of Type I error is determined by significance level. If
the significance level is 0.05 then probability of Type I error-
rejecting null hypothesis when it is true is 5%
 Type II error depends on µ. In this case, difference of population
is 5k and lets assume the significance level to be 0.05.

 We fail to reject null hypotheses i.e Type II error if the Tstat is less
than 1.69912
 For finding the probability, we will need to calculate D̅ where µ=
5000
(d̅ - µD)/Sd
tstat =
√n

d̅ - 0
Therefore, 1.699127 =
14.081/ √ 30

d̅ = 4.37
The above calculation states that we will incorrectly fail to reject
null hypothesis as long as we draw samples where the difference
of mean is 4.37
µ(New Scheme) - µ(Old Scheme)= 5000 is given, so the probability
of drawing the sample mean difference less than 4.37k is,
 (d̅ - µD)/Sd
tstat =
√n
4.37- 5
tstat =
2.571
Therefore, tstat = - 0.24504
Hence probability is,

Therefore probability of making Type II error is 40.40%.

 The power of the hypothesis test is 1- probability of Type II error.
So, the power of test is 1-beta= 1- 0.404074 = 0.5959 i.e 59.59%