MGT 202: Case study 2

Amna Zahid 211210077

John Kamanji 221210095

Question 1

The hypothesis states the following:

The null hypothesis states that the first mean minus the second mean is less or equal to 0
Ho: U1 - U2 ≤ 0

The alternative hypothesis states that the first mean minus the second mean is more the 0
H1: U1 - U2 > 0

Sample 1
Mean1 (x_1) = 138000
Sample size (n1) = 38
Standard deviation of sample (s1) = 34000

Sample 2

x_2 = 130000
N2 = 80
S2 = 46000

Significance level: 0.05

X_1 - x_2 = 138000 -13000 = 8000

s12 s22
+
n1 n2
340002 460002
= +
38 80
= 7541.29

Degree of freedom :
s12 s22 2
( n1
+ n2
)
2 2
( s1
n1 )
2 ( s2
n2 )
2

n1 − 1
+ n2 − 1

= 95

Critical value : 1.661

If t > 1.661 we will reject the null Hypothesis “Ho”

Test statistic:
x1 − x2 − 0
t=
s12 s22
n1
+ n2

 = 1.061

t < 1.661 therefore we will not reject the null hypothesis “Ho” but we will reject the alternative hypothesis
“H1”

Question 2

The given informations are as follows:

N=250
K=4

Category Frequency (f)

1 70
2 42
3 72
4 66
Total 250

Over Here,
The null and alternative hypothesis is

H0: p1=p2=p3=p4=0.25

H1: All the segment of the population are not equal to 0.25
p1 ≠ p2 ≠ p3 ≠ P ≠ 4 ≠ 0.25

b) after that the test statistic is

Category Observed Expected (O-E) (O − E )² (O-E) ²/E

Frequency (O) Frequency (E)
1 70 62.5 7.5 56.25 0.9
2 42 62.5 -20.5 420.25 6.724
3 72 62.5 9.5 90.25 1.444
4 66 62.5 3.5 12.25 0.196
Total 250 250 9.264

After that,

The test statistics is,

(O − E )2 / E Follows x²(n-1) d.f.

∑
x²

Then,

x² = 9.264

 Calculation
(72 − 62.5)2 (42 − 62.5)2 (72 − 62.5)2 (66 − 62.5)2
x2 = + + +
62.5 62.5 62.5 62.5

x² = 9.264

Here the Alpha value is “α”= 0.05 level of significance

number of categories = 4
degree of freedom “D.f”
D.f = n-1
= 4-1
=3

Then the p-value=0.025979

~> 0.0260 (Round up to 4 decimal places)

Therefore P-value: 0.01 < P- value < 0.025

C)

Since the P-value = < Alpha

0.0260 < 0.05

Then we will reject the null hypothesis H0 at 0.05 level of significance

Therefore, we can conclude from this that all the population Segments are = 0.25

Question 3

1. Mean = x bar - mu “U”

Mean = 72
Standard deviation = 10
Which is calculated by doing the square root of the variance

Hypothesis

H0: The population is normally distributed

H1: The population is not distributed normally

2. The Level of significance is equal to 0.05

Ei = n x pi
N=300

O Pi E (O-E) (O-E) ^2 (O-E) ^2/E

5 0.014 4.171 0.829 0.687 0.165
135 0.407 122.1 12.95 167.7 1.374
105 0.367 110.2 -5.22 27.26 0.247
45 0.176 52.78 -7.78 60.49 1.146
10 0.036 10.78 -0.78 0.607 0.056
300 2.9

 Test Statistic is

(Oi − Ei )2
x2 =
∑ Ei

(5 − 4.171)2 (135 − 122.1)2 (105 − 110.2)2 (45 − 52.78)2 (10 − 10.78)2

x2 = + + + +
4.171 122.1 110.2 52.78 10.78

x 2 = 2.998

Value of P = 0.5581

3)
Level of significance = 0.05

Degrees of freedom
D.f = r-1
= 5 -2-1
=2
R is the number of parameters.
Critical value “c.v” = 5.991 “Obtained from the chi- square table”

Test statistic < critical value

We fail to reject null hypothesis. Therefore we will reject the alternative hypothesis

Conclusion:
The population is normally distributed as shown through the calculation above.