BT1101: Introduction to Business Analytics

AY 2017/18 Semester 1
Tutorial 5: Hypothesis Testing

Due Date: 10 Oct 2017, 9am

Learning objectives:
In this tutorial, you will work on some questions that involves hypotheses testing. For all hypothesis
tests, please use the 5% level of significance unless otherwise stated.

Data Sets:
Please visit the companion website (http://wps.pearsoned.co.uk/ema_ge_evans_bus_2/) for access to
the data sets and excel files used in this tutorial.

Question 1:
The Sales Data provides data on a sample of customers. An industry trade publication stated that the
average profit per customer for this industry was at least $4500. Using a test of hypothesis, do the
data support this claim or not?

Question 2:
Using the Cell Phone Survey data, conduct hypothesis tests to determine if the mean responses for
Value for the Dollar and Customer Service differ by gender.

Question 3:
The Room Inspection data file provides data for 100 room inspections at each of 25 hotels in a major
chain. Management would like the proportion of nonconforming rooms to be less than 2%. Test an
appropriate hypothesis to determine if management can make this claim.

Question 4:
The director of human resources for a large bank has compiled data about 70 former employees at
one of the banks call centers (see the Call Center Data).

a) Assuming the variances of the two populations are equal,

i. test the null hypothesis that the average length of service for males is the same as for
females.
ii. test the null hypothesis that the average length of service for individuals without prior
call center experience is the same as those with experience.
iii. test the null hypothesis that the average length of service for individuals with a college
degree is the same as for individuals without a college degree.

b) Now check if the assumptions of equal variances in part (a) above are valid by conducting
tests of hypotheses for equality of variances. If not, repeat the test(s) for means using the
unequal variance test.

Question 5:
Using the Freshman College data,
a) determine whether significant differences exist in the mean retention rate for the different
colleges over the 4-year period.
b) determine if significant differences exist in the mean ACT and SAT scores among the
different colleges.

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