In: Statistics and Probability
You wonder if people will be more willing to agree with a new company policy if the president holds a meeting to explain the logic behind the decision. You select 20 people and randomly divide them into two groups. One group listens to a speech by the president detailing the reasons for a recent company decision and the other group listens to a speech by the president detailing the company’s most recent financial statement. You ask each participant on a scale of 1-100 how much they support the new company policy. The data are below. What would you conclude?
Given Reasons |
Financial Statement |
D |
D2 |
|
70 |
63 |
7 |
49 |
|
86 |
69 |
17 |
289 |
|
71 |
71 |
0 |
0 |
|
81 |
71 |
10 |
100 |
|
68 |
60 |
8 |
64 |
|
80 |
77 |
3 |
9 |
|
88 |
78 |
10 |
100 |
|
68 |
55 |
13 |
169 |
|
65 |
53 |
12 |
144 |
|
67 |
54 |
13 |
169 |
|
Sum |
744 |
651 |
93 |
1093 |
SS |
650.4 |
794.9 |
228.1 |
68492.18 |
H0: Null Hypothesis: ( People will not be more willing to agree with a new company policy if the president holds a meeting to explain the logic behind the decision. )
HA: Alternative Hypothesis: ( People will be more willing to agree with a new company policy if the president holds a meeting to explain the logic behind the decision. ) (Claim)
From the given data, the following statistics are calculated:
n1 = 10
1 = 744/10 = 74.4
n2 = 10
2 = 651/10 = 65.1
Pooled Standard Deviation is given by:
Test Statistic is given by:
Take
= 0.05
df = 10 + 10 - 2
From Table, critical value of t = 1.731
Since calculated value of t = 2.321 is greater than critical value of t = 1.731, the difference is significant. Reject null hypothesis.
Conclusion:
The data support the claim that people will be more willing to
agree with a new company policy if the president holds a meeting to
explain the logic behind the decision.