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Hypothesis Testing: ANOVA, Paired t test & Two sample z test

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25. The management of Discount Furniture, a chain of discount furniture stores in the Northeast,
designed an incentive plan for salespeople. To evaluate this innovative plan, 12
salespeople were selected at random, and their weekly incomes before and after the plan
were recorded.

9. A real estate developer is considering investing in a shopping mall on the outskirts of
Atlanta, Georgia. Three parcels of land are being evaluated. Of particular importance is the
income in the area surrounding the proposed mall. A random sample of four families is
selected near each proposed mall. Following are the sample results. At the .05 significance
level, can the developer conclude there is a difference in the mean income? Use the usual
five-step hypothesis testing procedure.

12. Given the following sample information, test the hypothesis that the treatment means are equal at the .05 significance level.

a. State the null hypothesis and the alternate hypothesis.
b. What is the decision rule?

c. Compute SST, SSE, and SS total.
d. Complete an ANOVA table.

e. State your decision regarding the null hypothesis.

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Solution Summary

The solution provides step by step method for the calculation of testing of hypothesis. Formula for the calculation and Interpretations of the results are also included. Interactive excel sheet is included. The user can edit the inputs and obtain the complete results for a new set of data.

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