Question

In: Statistics and Probability

You wonder if people will be more willing to agree with a new company policy if...

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

Solutions

Expert Solution

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.


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