In: Economics
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There are 118 values that show the differences in productivity of workers measured before and after they undertake a training program.
The null hypothesis is: There is no difference in productivity pre and post training program
The alternate hypothesis is: There is difference in productivity pre and post training program
The level of significance is 5%
Since, the difference figures are provided, use t-test.
Had the pre & post figures were provided, paired t test would have been used.
The test result is:
The degree of freedom = n-1 = 117
At 5% level of significance, the critical t-statistic for two-tailed is given as 1.96
Since, the critical t-statistic is less than actual t-statistic of 8.32968 at 5% level of significance and at 117 degree of freedom, the null hypothesis is rejected.
This implies, there is statistically significant difference between pre and post training program on productivity.
The assumption that is made is that the series of values showing productivity is continuous & normally distribution.