1. Describe the key question: What is the key question/claim that needs to be settled?

What
are the actions being considered based on the possible answers? (For example, the question for
the sales manager is whether the bonus system is effective, and the actions are whether to
continue the bonus system or not. HR’s question is whether there is discrimination and the
action will be adjusting salaries or not.) Without hypothesis testing, how is management
deciding on the answer to the question?

Every year the National Wild Turkey Federation (NWTF) will host a shooting event for children. We
provide hamburgers, hotdogs, and chips for the children and request a donation of 15 dollars per child.
The 15 dollar donation will help cover food cost and material costs for the children. All children were
supplied with the meals and materials. The only problem that was encountered was when the meals
and materials were being purchased for age groups. The children were split into two groups. The first
group was age 7-10 years old and the second age group was 10-16 years old.

The children between the age group of 7-10 had the meals and materials covered due to it being a
lower rate. These children had more than enough food and materials for the event. There was a higher
cost for the children in the 10-16 years of age due to having to obtain more meals and materials to
keep them feed and entertained.

Only charging all of the children a 15 dollar donation regardless of the age caused for expenses to be
paid out of pocket from the volunteers of the NWTF.

2. How would you set up the hypothesis test? State what the null and alternative hypothesis
would be and what kind of a test you would use.

HO= mean of children ages 7-10 <= Mean of children age 10-16
Ha= mean of children ages 7-10 > Mean of children age 10-16

The question that needs to be answered is if the compensation for meals and materials for the age
group of 10-16 be higher than the age group of 7-10. The action that is being considered is if we
should make the parents sign up and pay the fee ahead of time to make sure there is enough meals and
materials for each age group. Right now, we are predicting the same amount for each age group and
the compensation is the same regarding the age group.

The z-test formula will be used when testing. Since I am testing the means the data will provide the
standard deviation of the age groups. The sample size will be over 20 for each age group.

3. Describe the data you would use: What do you need and where would it come from?
Does it need to be collected or does it already exist?

In order to get the correct data, I would have to know how many children were in the age group of 7-
10 and how many were in the age group of 10-16. The pricing would have to be provided up front for
the meals and materials. The parents would have to sign their children up ahead of time and pay the
fee up front. This will allow us to make sure we have enough food and materials for each age group
and nothing will have to come out of the volunteer’s pockets. By parents signing and paying for the
fees, this will allow us to see a record of how many children are attending in the age groups.

4. How would you explain to management the significance of this test? How would you
convince them that using this is necessary? What would be drawback of not using a hypothesis
test in this situation?
I would have to convince the parents that the shooting event is worth it and the children will benefit
from learning all the safety that is involved with shooting and the proper way to shoot. I would have to
gather the prices of the meals and materials to show to the parents that the 15 dollars is reasonable and
what all it will provide for the children. By providing the prices for the meals and materials this will
allow the parents to see how good of a deal the shooting event is and that they will not be taken
advantage of. By not using the hypothesis test, the volunteers will have to come out of pocket for the
children and continue to lose money rather than breaking even.