2.

A market research firm used a sample of individuals to rate the purchase potential of a
particular product before and after the individuals saw a new television commercial about
the product. The purchase potential ratings were based on a 0 to 10 scale, with higher values
indicating a higher purchase potential. The null hypothesis stated that the mean rating
“after” would be less than or equal to the mean rating “before.” Rejection of this hypothesis
would show that the commercial improved the mean purchase potential rating. Use α = 0.05
and the following data to test the hypothesis and comment on the value of the commercial.

Answer :
The third column contains the difference value d1 for each element in the sample.
After before Difference (d1) (d1 - 𝒅 ̅ )2
6 5 1 0.140625
6 4 2 1.890625
7 7 0 0.390625
4 3 1 0.140625
3 5 -2 6.890625
9 8 1 0.140625
7 5 2 1.890625
6 6 0 0.390625
n
∑ d=5
∑ (d1 - d̅)2 =11.875
i=1
The sample mean for the difference values is given by:
∑d
d̅ =
n
5
=8
= 0.625
The sample standard deviation for the difference values is:
∑𝑛 ̅ 2
𝑖=1(𝒅1 − 𝒅)
Sd =√ 𝑛−1
11.875
=√ 8-1
= 1.3025
The null hypothesis stated is that the mean “after” would be less than or equal to the mean
rating “before”. So the null and alternative hypothesis are:
Ha : μd ≤ 0
Ha : μd > 0
Test statistic for hypothesis test involving matched samples is given by:
̅ − μd
𝒅
T = 𝑠𝑑
√𝑛
0.625−0
= 1.3025/√8
= 1.3572
Degrees of freedom = n -1
= 8-1
=7
Using t-distribution table, for 7 degrees of freedom, t = 1.3572 is between 0.896 and 1.415.
so the area under the curve to the right of t = 13572 is between 0.20 and 0.10.
So p-value lies in the interval (0.10, 0.20).
For the right tailed test, the exact p-value = 0.1080 (using excel function)
We use the level of significance a = 0.05 for this test. We fail to reject H 0 at 5% level of
significance since our p-value is greater than the level of significance. Hence, on the basis of
the sample data, we cannot conclude that the commercial improved the mean purchase
potential rating.