Question

1) What is the aim of hypothesis testing? What does hypothesis testing achieve that could not be otherwise achieved?

2) Research has shown that over half of the decisions made within organizations fail. Does this surprise you? Why or why not? Include research to support your response.

Please help. Thanks

Answer 1

1 The Purpose of hypothesis testing is not limited. There are many applications of hypothesis testing

Like,

The purpose of hypothesis testing is to determine whether there is enough statistical evidence in favor of a certain belief, or hypothesis,or about any parameter.

The purpose of the hypothesis testing hypothesis is to predict the relationship between two variables. For example, If you want to study pricing and customer loyalty, you won't waste your time and resources studying tangential areas. Hypothesis testing is the process of using statistics to determine the probability that a specific hypothesis is a truing is to determine whether there is enough evidence in favor of a Statement, or hypothesis, or about any Specific parameter

2

This surprises me tremendously. In the time’s we’re in now there are so many organizations prospering and becoming successful and I always thought to myself they must be doing something right. I don’t have much work experience but when I did work, my managers didn’t seem completely capable if I’m being honest. It wouldn’t surprise me If they made non-logical decisions that didn’t help them or the company in anyway. I saw managers make decisions that didn’t seem logical at the time but never said much as I understood my place in the company.

I have seen many of my managers make decisions out of fear and not logic which caused them to not see how their decision could have impacted their employees and the organization in a bad way. To give you an example, once of the managers would often go out with younger employees to get drinks at a bar across the street from the work place. Although this may not seem like something that bad, I have heard customers telling me they’d see my co-workers really intoxicated at that bar and I feel like it gave a negative light to us as a store and company. There was, many things like this that happened in our organization that I’m sure impacted the company in a bad way. Sometimes it’s simple decisions that can cause a big problem. So, I can understand that research found that half of decisions failed but I wouldn’t think there would be half. But sometimes making the wrong decisions can be a good thing as you can learn from and potentially grow and allow the company grow to new heights and grow as a leader within the company. I remember when I read about how Colgate tried to release a lasagna, which almost failed immediately. I often wondered what the board of directors were thinking when they approved that decision. To me, I wouldn’t have even though of doing that, it has a bad idea from the beginning. But there’s been other decisions that have been made by organizations that weren’t that obvious like Tropicana’s packaging redesign which almost also failed immediately. Sales plunged almost 20% with the redesign, which caused a firestorm consumer not adapting well and seeming unfamiliar with their new design that didn’t include an orange with a red and white straw. They immediately changed the design back to how it was previously. This was a decision anyone could have made as no one ever knew that result, it wasn’t as obvious of a bad idea as Colgate lasagna, but as they say, “if it isn’t broken don’t fix it”.

Overall, it does surprise me more than half of an organizations have been failures but organizations can learn from them and keep moving forward to better idea and making better decisions. For the most part, companies can come back from bad decisions. Organizations and leaders need to really understand their options when deciding and thinking if the most rational decision to make. Allow for leaders with lots of experience to make those important decisions and trust to make the better decision. I think many organizations have a strong chain of command to have the company’s best interest in mind and who are capable of making important decisions that can impact the company. Organizations should take risks while making logical decisions, see the outcome, understand how they can learn from it, learn from those mistakes and keep moving forward with never making the same mistake twice