UNIVERSITY OF GHANA BUSINES SCHOOL

UGBS 302 – RESEARCH METHODS

TEST STATISTICS AND ANALYSIS OF VARIANCE (ANOVA)
2022

1. Dumelo, a ginger farmer has discovered a new variety of ginger. He claims that the
average yield per plant is at least 6kg. Testing his claim some of the plants were planted
and measuring the yield 0.89 standard deviation and an average of 45.7 was obtained
with a random sample size is 10 plants. Using the various yields provided below, does the
data support Dumelo’s assertion?

a. Formulate the hypothesis

b. Using both the critical value and p-value approach to conclude.

2. Prospective salespeople for an encyclopaedia company are now being offered a sales
training program. Previous data indicate that the average number of sales per month for
those who do not participate in the program is at least 33. To determine whether the training
program is effective, a random sample of 35 new employees is given the sales training and
then sent out into the field. One month later, the mean and standard deviation for the
number of sets of encyclopaedias sold are 35 and 8.4, respectively. Do the data present
sufficient evidence to indicate that the training program enhances sales?
Use a 5% level of significance

3. Mr. No name is the VC of a large manufacturing company. He recently noticed an

increase in absenteeism that he thinks is related to the general health of employees. Four
years ago, in an attempt to improve the situation, he began a fitness program in which
employees exercise during their lunch hour. To evaluate the program, he randomly
samples some participants & found the number of days each was absent. Below are the
results. At 0.05 significance level, did the program reduce absenteeism?

Rating
Employee Before After
1 7 5
2 6 4
3 3 5
4 9 8
5 9 5
6 5 3
7 7 3
8 6 7
 a. State the appropriate hypothesis
b. What is the statistical analysis of the question above and which test statistic is required
for the testing the hypothesis?
c. What is the value of the test statistic?
d. What is the critical value of the test statistic?
e. Conclude using the critical value approach and the p-value approach.

4. A study reported in the Journal of Small Business Management concluded that self-
employed individuals do not experience higher job satisfaction than individuals who are
not self-employed. In the study, job satisfaction was measured using 18 items, each of
which is rated using a Likert-type scale with 1–5 response options ranging from strong
agreement to strong disagreement. A higher score on this scale indicates a higher degree
of job satisfaction. The sum of the ratings for the 18 items, ranging from 18–90, is used as
the measure of job satisfaction. Suppose that this approach was applied to measure the job
satisfaction level for Engineers, Physicians, Administrators and Systems Analysts. The
data in Table below shows the results obtained from the sample of individuals in 2014.

Engineers Physicians Administrators System Analysts

44 80 54 73
74 78 79 44
42 59 84 60
45 60 64 41
35 40 60 76
68 30 50 71
55 85 90 80

The following is an output of the analysis of variance test.

Summary Statistics
Groups Count Sum Average Variance
Engineers 7 363 A 208.48
Physicians 7 432 B 438.24
Administrators 7 481 C 242.90
System Analysts 7 445 D 245.62

Analysis of Variance
Source of Variation SS df MS F P-value
Between Groups E F H J 0.32
Within Groups 6811.43 G I

Total 7856.96
 a. State the appropriate null and alternate hypothesis.

b. Complete the table above

c. Determine the value of the test statistics

d. Determine the critical value of the test statistics

e. Conclude if a statistically significant difference exist between the mean differences in

the job satisfaction among the four professions.

f. Using Fishers LSD comparison approach, conduct a pairwise test to determine if there
exists significant differences in the pairs. Use alpha=0.05

5. The Ministry of Energy is examining the effectiveness of four newly introduced

electricity generation plants to enhance electricity supply. The four types of plants are
Type 1, Type 2, Type 3 and Type 4. Experts who examined the effectiveness of the
plants have provided the ratings of each plant type as shown in the Table below.

Type 1 Type 2 Type 3 Type 4

4 7 4 4
3 7 3 8
4 5 2 6
6 2 3 11
11 8 6 9
10 3 8
5 11 4
4 8

From the table above assist the Ministry of Energy to determine the level of difference of
the effectiveness of the plant types given the following questions
a. State the appropriate hypothesis
b. Test the hypothesis to identify the differences in level of effectiveness for the various
types.
c. What will be your recommendation to the ministry of Energy on the various types of
plants?
d. Using Fishers LSD comparison approach, conduct a pairwise test to determine if there
exists significant differences in the pairs.