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Example 1 On Z

Example

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38 views4 pages

Example 1 On Z

Example

Uploaded by

Anu Nadar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Example 1 on Z-test

Suppose a company is evaluating the impact of a new training program on the productivity of its
employees.

The company has data on the average productivity of its employees before implementing the
training program. The average productivity was 50 units per day with a
known population standard deviation of 5 units. After implementing the training program, the
company measures the productivity of a random sample of 30 employees. The sample has an
average productivity of 53 units per day. The company wants to know if the new training program
has significantly increased productivity.

Answer:

To evaluate whether the new training program significantly increased employee productivity, we can
perform a one-sample z-test. Here's how to approach it step by step:

Step 1: Formulate the Hypotheses

The hypotheses for this test will be:

- Null Hypothesis (H₀): The training program did not increase productivity. The average productivity
after the training is the same as or less than before.

H₀: u = 50

- Alternative Hypothesis (H₁): The training program increased productivity. The average productivity
after the training is greater than before.

H₁: u > 50

Step 2: Set the Significance Level (α)

The company should set the significance level (α), which is the probability of rejecting the null
hypothesis when it is true. A common choice is 0.05 (5%).

alpha = 0.05

Step 3: Calculate the Test Statistic (z-score)

The formula for the z-test statistic is:


Where:

- (bar{x}) = sample mean (53 units/day)

- (mu_0) = population mean under the null hypothesis (50 units/day)

- (sigma) = population standard deviation (5 units/day)

- (n) = sample size (30)

Plugging in the values:

Step 4: Determine the Critical Value

Since we are conducting a one-tailed test at a 0.05 significance level, we can look up the critical value
for (z) in a z-table. The critical value for (z) at (alpha = 0.05) for a one-tailed test is approximately
1.645.

Step 5: Compare the Test Statistic with the Critical Value

The calculated z-score is 3.29, which is greater than the critical value of 1.645.

Step 6: Make a Decision

Since the calculated z-score (3.29) is greater than the critical value (1.645), we reject the null
hypothesis.

Step 7: Conclusion

There is enough evidence to conclude that the new training program has significantly increased the
productivity of employees.
Question 1:

A famous Vada Pav stall in Mumbai is trying to assess the impact of a new marketing campaign
on its daily sales. Before the campaign, the average daily sales of Vada Pavs were 500 units,
with a known population standard deviation of 50 units. After launching the marketing
campaign, the stall collects a random sample of 36 days of sales data. The sample shows an
average daily sales of 520 Vada Pavs. The stall owner wants to know if the marketing campaign
has significantly increased daily Vada Pav sales. Perform a hypothesis test to determine this.

Question 2:

A company in Mumbai is trying to assess the impact of a new sales strategy on its revenue.
The average daily revenue for the company before implementing the new strategy was
₹1,00,000 with a known population standard deviation of ₹15,000. After implementing the
strategy, the company collects a random sample of 40 days of revenue data. The sample has
an average daily revenue of ₹1,05,000. The company wants to know if the new sales strategy
has significantly increased its daily revenue. Conduct a hypothesis test to determine this.

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