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Drinking Case Study

Megan Taylor
Pima Community College
CRN13042 Analytical Methods in Business
Dr. Christina Waddell
December 6, 2020
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Alcohol Causing Driving Error

The ABC Testing Company is analyzing the information to see if alcohol impairs drivers’

ability. They will give this information to ABC Insurance. The ABC Testing company is

conducting this test by providing 25 drivers with three 16-ounce cans of beer in a 60-minute

period. The drivers will first drive without drink alcohol and a proctor will count their driving

errors. After 60-mintues of drinking the three 16-ounce cans of beer, the drivers will re-drive on

the same track and the proctor will count the driving errors once again. By doing this, ABC

Testing Company should be able to provide analytical information that proves that this data is

normally distributed and that there is a correlation between drinking alcohol and an increase in

driving errors.

Descriptive Statistics
Without
Alcohol   With Alcohol  

Mean 77.2 Mean 88.32

Standard Error 2.57164 Standard Error 2.063751
Median 74 Median 89 A Descriptive Statistic from the data
Mode 58 Mode 89
Standard Standard provides important information from
Deviation 12.8582 Deviation 10.31875
Sample Sample the 25 participants. By looking at
Variance 165.3333 Variance 106.4767
Kurtosis -1.21698 Kurtosis -0.06641 both sections, with and without
Skewness 0.090371 Skewness 0.069579
Range 41 Range 40 alcohol, it is important to understand
Minimum 58 Minimum 68
Maximum 99 Maximum 108 the relationship between the mean,
Sum 1930 Sum 2208
Count 25 Count 25 median, and skewness. The ABC

Testing Company is first going to examine the With Alcohol to see if the data is normally

distributed. This means that the data is symmetrical in nature in order to begin to make

inferences on the data. The most common way to make these inferences on this data is to look at
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the mean, medium, and skewness. When looking at the columns Without Alcohol, the mean is

77.2 and median is 74. It is notable that there is only a 3.2-digit difference between the numbers

showing that the data is normally distributed. The Without Alcohol skewness is 0.090371 and this

confirms that the information is normally distributive. In order to continue, it is imperative that

the With Alcohol is normally distributed. When looking at the information above, it can be

observed that the mean is 88.32 and medium is 89. The difference between the mean and

medium, being only .68, gives credence to the fact that the information is normally distributed.

Another way to confirm this information is examine the skewness which is 0.069579, showing

that information is normally distributed.

Wilcoxon Signed Ranked Test

Subject Without Alcohol With Alcohol d ldl t- t+
1 95 89 6 6 5.5
2 92 83 9 9 8.5
3 79 80 -1 1 1
4 74 90 -16 16 15
5 86 84 2 2 2
6 92 68 24 24 19
7 68 84 -16 16 15
8 97 104 -7 7 7
9 86 81 5 5 4
10 72 88 -16 16 15
11 99 93 6 6 5.5
12 58 92 -34 34 24
13 89 103 -14 14 11
14 66 106 -40 40 25
15 74 89 -15 15 12.5
16 58 89 -31 31 22
17 67 77 -10 10 10
18 87 78 9 9 8.5
19 81 108 -27 27 21
20 73 69 4 4 3
21 61 84 -23 23 18
22 60 86 -26 26 20
23 71 92 -21 21 17
24 82 97 -15 15 12.5
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25 63 94 -31 31 23

When looking at a Wilcox Signed Rank Test, the ABC Testing Company was trying to figure out

if the information provided above is different from each other. By conducting the Wilcox Signed

Rank Test, the ABC Testing Company is able to inform ABC Insurance if the information differs

from each other. To begin testing, the ABC Testing Company needs to find out what the null

hypothesis and what is the alternative hypothesis. The null hypothesis will state that everything

is equal, so there is no difference in the data. The alternating hypothesis will inform the ABC

Testing Company that the information is different. The level of significance that the ABC

Testing Company is using is a .05 significance level. By the ABC Testing Company doing the

appropriate tests, they were able to find out that the P value is 0.042737. By the P value being

less than the significant level, this means that the ABC Testing Company can confirm that the

information is different. The reason that the ABC Testing Company can confirm that the

information is different is the fact that the P value is less than the significance level showing that

it rejects the null hypothesis. After conducting the Wilcox Ranks Test and finding out that there

is a difference between the two sets of data, the ABC Testing Company can figure out if there is

a correlation between driving errors and drinking alcohol (p732).

Spearman Rank Test

Rank
Rank With
with Alcohol
Subject Without Alcohol With Alcohol Alcohol 2 d d^2
1 95 89 23 14 9 81
2 92 83 21.5 7 14.5 210.25
3 79 80 14 5 9 81
4 74 90 12.5 16 -3.5 12.25
5 86 84 17.5 9 8.5 72.25
6 92 68 21.5 1 20.5 420.25
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7 68 84 8 9 -1 1
8 97 104 24 23 1 1
9 86 81 17.5 6 11.5 132.25
10 72 88 10 12 -2 4
11 99 93 25 19 6 36
12 58 92 1.5 17.5 -16 256
13 89 103 20 22 -2 4
14 66 106 6 24 -18 324
15 74 89 12.5 14 -1.5 2.25
16 58 89 1.5 14 -12.5 156.25
17 67 77 7 3 4 16
18 87 78 19 4 15 225
19 81 108 15 25 -10 100
20 73 69 11 2 9 81
21 61 84 4 9 -5 25
22 60 86 3 11 -8 64
23 71 92 9 17.5 -8.5 72.25
24 82 97 16 21 -5 25
25 63 94 5 20 -15 225
2627.00
            0

In Order to find out if there is a correlation between drinking With Alcohol and drinking Without

Alcohol, the ABC Testing Company has run a Spearman Rank Correlation. By conducting a

correlation test, they will be able to prove that there is a correlation, or if there is not a

correlation between the data sets. The ABC Testing Company has decided to use a .05 level of

significance in order to prove that there is a correlation between the data. The null hypothesis

states that everything is equal and the alternative hypothesis states that there is a difference. If

there is a correlation between the data then they will reject the null hypothesis which states that

everything is equal. This will mean that the P value is less than the level of significance. If the P

value is greater than the significant level then they will accept the null hypothesis which means

there is no correlation between the two data points. After conducting the appropriate test, ABC

Testing Company found out that the P value 0.95942591. This means that the company will
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accept the null hypothesis. This means that there is no correlation between driving errors and

drinking alcohol (p751).

Looking at the graph above, the ABC Testing Company has a visual representation of each of the

individual 25 subjects that participated in the study. By examining each of the individual criteria,

ABC Testing Company can observe that the Without Alcohol errors stay in between 55 to 100.

When looking at the With Alcohol error, the number range is 60 to 110.This is a clear indication

that the information is normally distributed in the error groups With Alcohol and Without

Alcohol.  As information is placed on top of each of the individual groups, it is noticeable that

there is not a clear correlation between the With Alcohol test and the Without Alcohol test. The

reason for this noticeability is because the information is not distinctly above or below each other

indicating that there is no clear correlation.  This shows why in the Wilcox Singed Rank Test

there is a difference between the With Alcohol test and the Without Alcohol test and in the
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Spearman Correlation Test there is no correlation between With Alcohol test and the Without

Alcohol test.

Conclusion
The ABC Testing Company will inform ABC Insurance there is no correlation between the

amount of driving errors and drinking alcohol and driving. The ABC Testing Company might

want to run additional tests that include the participant to have a certain blood alcohol level

instead of the number of drinks. They believe this might be a better indicator of why there is

correlation between drinking and more driving errors. The ABC testing company would also

require a larger sample size. A larger sample size would allow the company to have a greater

number of subjects that would decrease the likelihood of outliers. If ABC Insurance wants to

continue their investigation with the amount of driving errors and drinking alcohol. The ABC

Testing Company is suggesting that the sample size be larger and that they conduct the test by

gaging the participants blood alcohol level instead of the number of drinks before they get

behind the wheel of a car.

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References
Jaggia, S., & Kelly, A. (2019). Business statistics: Communicating with numbers. McGraw-

Hill Education.