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Test of Significance - : 3-Standard Error of Difference

The document presents the results of a test of significance conducted to analyze if two areas of a city have significantly different responses to advertisement strategies and their impact on market share. A sample of 200 people across two areas - 125 from Charbagh and 75 from Alambagh, found 80 out of 125 and 65 out of 75 said advertisements impacted market share. The null hypothesis that the proportions are the same was tested against the alternative that they are different. The z-score of -3.49 exceeds the critical value of 1.96, so the null is rejected, indicating the areas responded differently to advertisements. A second example tests if increased sales of ITC soap after a marketing campaign were significant using a t-test, finding a

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avinash13071211
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367 views

Test of Significance - : 3-Standard Error of Difference

The document presents the results of a test of significance conducted to analyze if two areas of a city have significantly different responses to advertisement strategies and their impact on market share. A sample of 200 people across two areas - 125 from Charbagh and 75 from Alambagh, found 80 out of 125 and 65 out of 75 said advertisements impacted market share. The null hypothesis that the proportions are the same was tested against the alternative that they are different. The z-score of -3.49 exceeds the critical value of 1.96, so the null is rejected, indicating the areas responded differently to advertisements. A second example tests if increased sales of ITC soap after a marketing campaign were significant using a t-test, finding a

Uploaded by

avinash13071211
Copyright
© Attribution Non-Commercial (BY-NC)
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Test of significance—

As I took a sample of 200 people,in a sample of 125 people from a Charbagh of


Lucknow city 80 people said advertisement strategies of Reliance have impact on its
market share and in other sample of 75 people from a alambag area of lucknow city ,65
people said yes advertisement strategies of hul have impact on Increase market share
now I want to analyse ,Do the data indicate the two area of same city are significant
different with respect to impact of advertisement strategy on market share. .

Hypothesis-
n1=125, p1=80/125= 0.64

n2=75, p2=65/75 = 0.86

1—Null Hypothesis—There is no significance difference

H0: p1=p2

Alternative Hypothesis:

H1: p1≠ p2→A two tailed test

Computation of test static →

Sample mean proportion of the two sample proportion=

P =n1*p1 +n2 *p2/n1+n2

P = 125 * 0.64 + 75 * 0.86/135 +75

P= 80 +75 /200

P = 155 /200 = 0.75

3—Standard error of difference-----


S.E : (P1 – p2) = √ P (1-P) +P(1-P)Type equation here.
=√ (.75 * 0.25/125) + (0.75 * 0.25/75)

= 0.063

Test static:
Z= P1-P2/S.E (p1 – P2)

= 0.64 – 0.86/0.063

= -3.49

4- Leval of significance : 0.05

5- value of Z = 1.96
Decision value Z = -3.49 = 3.49 > 1.96
That is the null hypothesis Ho is rejected →
Advertising strategy have impact on increase
market share.

Test of significance-----

@---A ITC company was distributed the vivel brand soap through aLarge number of
retail shop.Before the heavy marketing compaign the Mean sales per shop was 140
dozens.But after heavy marketing compaign a sample of 26 shop is taken and the mean
sales is 147 dozen with standard deviation 16.Is it have impact of marketing on sales of
ITC soap.
Solution---

N =26 → it is a case of small sample

Also Xˉ = 147, S = 16

Varience (v)=degree ofv freedom=26-1=25

1-null hypothesis –There is no significance difference between the sample mean and
population mean. →the marketing is not effective

Ie :μ = 140

Alternative hypothesis: H1 : μ>140→Single tailed test →marketing is effective and it has


impact on product sales.

2-computation of test static----:

Standard error of mean:= s/√n-1=16/√(26-1) = 3.2

Test static :t=Xˉ -μ /S.E (xˉ) =147-140 /3.2 = 2.19

3 –Level of significance .Let us take σ = 0.05

4 =Critical value .t0.05,25 =1.708 for single tailed

5 = Decision . The calculated value of t (=2.19)>t0.05,25(=1.708)→

The null hypothesis is rejected →the marketing is effective.

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