Page 241 - DMGT209_QUANTITATIVE_TECHNIQUES_II

Quantitative Techniques-II

Notes
Example:
 “Is the current advertisement less effective than the proposed new advertisement”?

 A two-tailed test is appropriate, when the researcher has no reason to focus on one
side of the issue.

Example: “Are the two markets – Mumbai and Delhi different to test market a product?”
 A product is manufactured by a semi-automatic machine. Now, assume that the
same product is manufactured by the fully automatic machine. This will be two-
sided test, because the null hypothesis is that “the two methods used for
manufacturing the product do not differ significantly”.
 H = µ = µ
0 1 2
Sign of alternate hypothesis Type of test
= Two-sided
< One-sided to right
> One-sided to left

12.2.4 Degree of Freedom

It tells the researcher the number of elements that can be chosen freely.

Example: a+b/2 =5. fix a=3, b has to be 7. Therefore, the degree of freedom is 1.

12.2.5 Select Test Criteria

If the hypothesis pertains to a larger sample (30 or more), the Z-test is used. When the sample is
small (less than 30), the T-test is used.

12.2.6 Compute

Carry out computation.

12.2.7 Make Decisions

Accepting or rejecting of the null hypothesis depends on whether the computed value falls in the
region of rejection at a given level of significance.

Task Discuss When Would You Prefer Two Tailed Test To One Tailed Test.

Self Assessment

Fill in the blanks:
1. A …………………..is a tentative proposition relating to certain phenomenon, which the
researcher wants to verify when required.
2. A …………..is a statement about the population, whose credibility or validity the researcher
wants to assess based on the sample.

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