Hypothesis Tests

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Question 17.6: Hypothesis Tests

Question 17.6
6 What hypothesis testing procedure would you use in the following situations?
a. A test classifies applicants as accepted or rejected. On the basis of data on 200 applicants, we test the hypothesis that ad placement success is not related to gender.
This particular scenario would be best tested using the Chi-Square Test. According to Cooper & Schindler (2014), “Typical are cases where persons, events, or objects are grouped in two or more nominal categories such as “yes–no,” “favor–undecided–against,” or class “A, B, C, or D” (p. 445). This scenario has an accepted or rejected requirements suiting, and it requires a nominal scale of measure. The H0: There is a relationship between gender and ad placement success. The HA: There is no relationship between gender and ad placement.
b. A company manufactures and markets automobiles in two different countries. We want to know if the gas mileage is the same for vehicles from both facilities. There are samples of 45 units from each facility.
The two-related-samples test because of the identical nature of the products. Cooper and Schindler (2014) mention, “The two-related-samples tests concern those situations in which persons, objects, or events are closely matched or the phenomena are measured twice” (p. 450). This particular case is measuring the difference between these two automobiles and compares their gas mileage. More specifically, the McNemar test may be utilized in this situation because it observes changes from the same subject.
c. A company has three categories of marketing analysts: (1) with professional qualifications but without work experience, (2) with professional qualifications and with work experience, and (3) without professional qualifications but with work experience. A study exists that measures each analyst’s motivation level (classified as high, normal, and low). A hypothesis of no relation between analyst category and motivation is to be tested.
This scenario would best suit the k-independent-samples test. Cooper and Schindler (2014) concluded, “We often use k-independent-samples tests in research when three or more samples are involved” (p. 453). This is mostly because we are looking for relationships between these multiple categories. Additionally, McNicol (2013) mentioned, “In general ‘significantly different’ means ‘the data are unlikely (P < 0.05) to come from distributions with the same mean” (p. 289).
d. A company has 24 salespersons. The test must evaluate whether their sales performance is unchanged or has improved after a training program.
The McNemar test may be appropriate in this situation. Considering the 24 sales people are basically similar test subjects. We are simply gauging whether sales increased from their typical sales and if it was improved after training. Cooper and Schindler (2014) mention, “The McNemar test is chosen because nominal data are used, and the study involves before-after measurements of two related samples” (p. 453).
e. A company has to evaluate whether it should attribute increased sales to product quality, advertising, or an interaction of product quality and advertising.
The two-related-samples test may again be a good fit for this particular scenario. According to Cooper and Schindler (2014), “The matched- or paired-samples t -test is chosen because there are repeated measures on each company, the data are not independent, and the measurement is ratio” (p. 451). This situation matches this because we are looking for a relationship or ratio between these like actions taken by the company.
With these scenarios, there are often errors or some unforeseen circumstances that can cause a bad decision or a researcher even pursue the wrong hypothesis testing method. The scripture helps to guide us after some of these possible failures. Proverbs mentions, “For the righteous falls seven times and rises again, but the wicked stumble in times of calamity” (Proverbs 24:16). Failure is not the end, it is rather the beginning and a means to improve. Psalms also says, “Cast your burden on the Lord, and he will sustain you; he will never permit the righteous to be moved” (Psalm 55:22). Forgiveness is also a result of failure, though depending on the degree it could cost a job; however, if we as Christians are faithful, the Lord will also provide!
References

Cooper, D. R., & Schindler, P. S. (2014). Business research methods. New York, NY: McGraw-Hill Education.
McNicol, J. (2013). Significance testing after analysis of variance. Annals of Applied Biology, 162(3). http://dx.doi.org/10.1111/aab.12026