ONE SAMPLE T- TEST (BEHAVIOUR OF AN INDIVIDUAL VARIABLE)

CASE

A manufacturing company wants to evaluate the performance of its sales force. Hence, 20
customers are selected in a market and are asked to rate the performance of the sales force on 5
point scale. ( Ratings are: 1-Poor, 2-Below Average, 3-Average, 4-Good, 5-Excellent).

Input data table:

Sample Performance
1 2
2 4
3 3
4 4
5 3
6 4
7 2
8 5
9 1
10 4
11 2
12 5
13 2
14 4
15 3
16 1
17 2
18 3
19 2
20 3

The company’s expectation is that the performance of the sales force must be at least 4 and not
less than that.

Questions:

1. Formulate the null and alternate hypothesis.

2. Suggest a suitable statistical test to test the performance of sales force.
3. Calculate t calculated and t critical with degree of freedom at 1% and 5% level of
significance.
4. Draw conclusion from the t-test output table from SPSS/Excel.
 INDEPENDENT T-TEST (DIFFERENCE IN THE RESPONSE AMONG TWO
SET OF SAMPLE)

CASE
A manufacturing company wants to evaluate the performance of its sales force in two different
markets. Hence, 20 customers from each market, A and B are asked to rate the performance of the
sales force of their respective market, on 5 point scale. (Ratings are: 1-Poor, 2-Below Average, 3-
Average, 4-Good, 5-Excellent).

Input data table:

Sample Performance Sales Force Sample Performance Sales Force

1 2 1 21 5 2
2 4 1 22 4 2
3 3 1 23 4 2
4 4 1 24 4 2
5 3 1 25 5 2
6 4 1 26 4 2
7 2 1 27 4 2
8 5 1 28 4 2
9 1 1 29 5 2
10 4 1 30 3 2
11 2 1 31 4 2
12 5 1 32 5 2
13 2 1 33 3 2
14 4 1 34 4 2
15 3 1 35 5 2
16 1 1 36 2 2
17 2 1 37 5 2
18 3 1 38 5 2
19 2 1 39 4 2
20 3 1 40 4 2
To test whether is there significant difference of sales force performance in different markets.

Questions:

1. Formulate the null and alternate hypothesis.

2. Suggest a suitable statistical test to test the performance of sales force.
3. Calculate t calculated and t critical with degree of freedom at 1% and 5% level of
significance.
4. Draw conclusion from the t-test output table from SPSS/Excel.
 PAIRED T-TEST (IMPACT OF TEST VARIABLE)

CASE

A manufacturing company collected data from 20 customers in the market regarding the
performance of the sales force and found that the performance not satisfactory. Hence, they
implemented a training program to improve the performance of the sales force. Now, the company
wants to evaluate the effectiveness of the training program and collected data from the same 20
customers in the market. They were asked to rate the performance of the sales force on 5 point
scale. (Ratings are: 1-Poor, 2-Below Average, 3-Average, 4-Good, 5-Excellent).

Input data table:

Sample Performance Before Performance After

Training Training
1 2 3
2 4 4
3 3 5
4 4 3
5 3 4
6 4 4
7 2 2
8 5 5
9 1 4
10 4 5
11 2 4
12 5 5
13 2 4
14 4 5
15 3 4
16 1 5
17 2 2
18 3 3
 19 2 4
20 3 3

Questions:

1. Formulate the null and alternate hypothesis.

2. Suggest a suitable statistical test to test the performance of sales force.
3. Calculate t calculated and t critical with degree of freedom at 1% and 5% level of
significance.
4. Draw conclusion from the t-test output table from SPSS/Excel.
 Practice Examples
1. An advertising manager has devised two ad campaigns. He wanted to check the
effectiveness of the ad campaign and test whether it varies across two cities. Sample
data of the respondents from two cities is given below. Develop the hypothesis and
perform appropriate statistical test in SPSS to test the hypothesis. Effectiveness of the
ad campaign is measured on a five point scale from highly effective (5) to least effective
( 1).

Sample City Effectiveness of the Ad

Campaign
1 1 4
2 1 3
3 1 4
4 1 5
5 1 3
6 1 4
7 1 5
8 1 4
9 1 3
10 1 3
11 2 1
12 2 1
13 2 2
14 2 2
15 2 3
16 2 4
17 2 5
18 2 4
19 2 3
20 2 4

Questions:

1. Formulate the null and alternate hypothesis.

2. Suggest a suitable statistical test to test the given situation.
3. Calculate t calculated and t critical with degree of freedom at 1% and 5% level of
significance.
4. Draw conclusion from the t-test output table from SPSS/Excel.
 2. OM construction is a leading company in the construction sector of India. It wants to
construct flats in Mumbai and Delhi. The company wants to estimate the amount
customers are willing to spend on purchasing flat in the 2 cities. It randomly selected
30 respondents from both cities and posted questions how much you are willing to
spend on flat? On the basis of the study, estimate the difference.

Sample City Willing to Spend amount

on Flat
1 1 50
2 1 55
3 1 53
4 1 48
5 1 50
6 1 51
7 1 53
8 1 52
9 1 49
10 1 50
11 2 55
12 2 51
13 2 60
14 2 52
15 2 51
16 2 50
17 2 47
18 2 49
19 2 50
20 2 51

Questions:

5. Formulate the null and alternate hypothesis.

6. Suggest a suitable statistical test to test the given situation.
7. Calculate t calculated and t critical with degree of freedom at 1% and 5% level of
significance.
8. Draw conclusion from the t-test output table from SPSS/Excel.