Practice Problems - Hypothesis Testing

BSA
17 September 2019

Problems
1. Pizza Ratings Problem - The manager of the Smokin’ Joe’s Pizza has recently been experimenting with a
new method of baking its pizzas. He personally believes that the new method produces a better tasting pizza,
but he would like to base a decision on whether to switch from the old method to the new method on the basis
of consumer reactions. Therefore he performs an experiment. For 40 randomly selected customers who order
a pepperoni pizza for home delivery, he includes both an old style and a free new style pizza in the order. All
he asks is that these customers rate the difference between pizzas on a –10 to +10 scale where –10 means they
strongly prefer the old style and +10 means they strongly prefer the new style and 0 means they are indifferent
between the two styles. Once he gets the ratings from the customers, how should he proceed? Refer to the
excel file attached in the same email in which you receive this document.
2. There was a heated argument between two groups of PRM40 students about the proportion of people riding
2-wheelers without wearing helmet. One group claimed that traffic laws are enforced more in larger cities like
Ahmedabad than in relatively smaller cities like Anand. The onus of proof lies with the group which is making
the claim, and hence the claim would go in the alternate hypothesis.
(a) 300 2-wheelers were randomly sampled in Anand, 60 among those were found to be wearing helmets. 400
2-wheelers were randomly sampled in Ahmedabad, 90 among those were found to be wearing helmets.
Conduct a hypothesis test of equality of proportions, and give the verdict at significance level 1%, 5% and
10%.
(b) Would your answer to the above part change if the claim (alternative hypothesis) was that traffic laws
are enforced differently for Ahmedabad and Anand. Write the null and alternate hypothesis, and give the
verdict at significance level 1%, 5% and 10% by calculating the p-value.
3. Problem number 11 on Page 436 of your prescribed book. The excel file required is attached with the same
email in which you receive this document. (Alternatively, required files for all problems are available in Data
Files folder in BSA folder in Z-drive)
4. Section D is claiming that it is better than other sections in BSA. As a proxy to the measure of proficiency in
BSA, midterm marks are chosen. Based on the data given to you, can section D make their claim pass through
a hypothesis test at significance level 5%. (Section D’s claim would go in the alternate hypothesis)
Suppose that BSA instructors who believe that section D is similar to other sections want to conduct a similar
hypothesis test. The alternative hypothesis chosen by instructors would be Section D’s proficiency in BSA is
different from other sections. Based on the given data, will they be able to reject the null hypothesis at 5%
significance level.
Remark - Marks of 50 students of section-D and 150 students of other sections are given in the attaached
excel file. You can assume that the marks are normally distributed.
Do it using Data Analyis toolpack of Excel, and also without using the Data Analysis Toolpack.