PRACTICAL EXCERCISES ON EXCEL

HYPOTHESIS TESTING
Question 1
Using dataset of Pizzarating. The manager Pepperoni Pizza Restaurant has recently begun
experimenting with new method of baking pepperoni pizzas. He personally believes that the new
method produces a better-tasting pizza, but he would like to base the decision whether to switch
from the old method to the new method on customer reactions. Therefore, he performs an
experiment. For 100 randomly selected customers who order a pepperoni pizza for home delivery,
he includes both an old-style and a free new-style pizza in the order. All he asks is
that these customers rate the difference between pizzas on a -10 to +10 scale, where -10 means that
they strongly favor the old style, +10 means they strongly favor the new style, and 0 means they
are indifferent between the two styles.
a) Once he gets the ratings from the customers, how should he proceed?
b) Should the manager switch to the new-style pizza on the basis of these sample results?
Question 2
The file Insurrance_53.xlsx contains the number of days 44 mothers spent in the hospital after
giving birth (in the year 2005). Before health insurance rules were changed (the change was
effective January 1, 2005), the average number of days spent in a hospital by a new mother was
two days. For a 5% level of significance, do the data in the file indicate (the research hypothesis)
that women are now spending less time in the hospital after giving birth than they were prior to
2005? Explain your answer in terms of the p-value for the test.
Question 3
Sixty people have rated a new beer on a taste scale of 0 to 100. Their ratings are in the file
Beer_58.xlsx. Marketing has determined that the beer will be a success if the average taste rating
exceeds 75. Using a 5% significance level, is there sufficient evidence to conclude that the beer
will be a success? Discuss your result in terms of a p-value. Assume ratings are at least
approximately normally distributed.
Question 4
Fifty people were asked to rate a competitive beer on a taste scale of 0 to 100. Another 50 people
were asked to rate our beer on the same taste scale. The file Competitor_59.xlsx contains the
results. Do these data provide sufficient evidence to conclude, at the 1% significance level, that
people believe our beer tastes better than the competitor’s? Assume ratings are at least
approximately normally distributed. Would you reach the same conclusion if only the data from
the first 10people in each group were used?
Question 5
A company is concerned with the high cholesterol levels of many of its employees. To help combat
the problem, it opens an exercise facility and encourages its employees to use this facility. After a
year, it chooses a random 100 employees who claim they use the facility regularly, and another
200 who claim they don’t use it at all. The cholesterol levels of these 300 employees are checked,
with the results shown in the file Cholesterol_66.xlsx