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Homework 7
PART A
1. The sales data of an item in six shops before and after a special promotional
campaign are as under:
Shop 1 2 3 4 5 6
Before 53 28 31 48 50 42
campaign
After 58 29 30 55 56 45
campaign
Can the campaign be judged to be success? Test at 5% level of significance.
2. You are working as a manager for a company. The following information has
been supplied to you by two manufacturers of electric bulbs:
Company X Company Y
Mean life 1300 1250
Standard deviation 85 90
Sample size 90 110
Which brand of bulb are you going to purchase if you desire to take risk of
5%?
3. The current advertising campaign for coca-cola would be changed if less than
30 percent consumers like it.
i. Formulate the null and alternative hypothesis
ii. Discuss the type I and type II errors that could occur in hypothesis
testing.
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