SUBMITTED BY:

SUBMITTED TO: ANKIT RAKHECHA

DR. AMRITA SENGUPTA ASHUTOSH PANDEY
KANKANA BRAHMA
SOUVIK GHATAK
VIPUL GUTA
Introduction:

• Hypothesis testing is an act in statistics whereby

an analyst tests an assumption regarding a
population parameter. The methodology
employed by the analyst depends on the nature
of the data used and the reason for the analysis.
Hypothesis testing is used to infer the result of a
hypothesis performed on sample data from a
larger population.
• There are two hypothesis that are tested, null &
alternate.
Problem Definition:

Though there is a large number of 650cc

motorbikes in 2 wheelers market, whether Royal
Enfield interceptor 650 will be a viable option to
go for the mass.
Objective:

To define the appropriate strategy of launching based on

cost effectiveness and performance.
Hypothesis:

Statement:

Royal Enfield is willing to launch its new 650cc motorbike

Royal Enfield Interceptor 650 and for that it wants to find
out the details of any potential competitors. According to
the R&D team, considering top competitors, the average
mileage of 650cc motorbikes is 17.4 Kmpl and the average
price amounts to at most 5.48 Lakhs. Now it wants to access
whether the claim of the R&D team is true.
Desired Null and Alternate Hypothesis:

A) Considering Price of various motorbikes (650 cc):

H0 <= 5.48 --------- Null Hypothesis
H1 > 5.48 --------- Alternate Hypothesis

B) Considering Mileage of various motorbikes:

H0 <= 17.4 --------- Null Hypothesis
H1 > 17.4 --------- Alternate Hypothesis
C) Considering Weight of various motorbikes:
H0 >= 229 --------- Null Hypothesis
H1 < 229 --------- Alternate Hypothesis

D) Considering Ground Clearance of various motorbikes:

H0 <= 135 --------- Null Hypothesis
H1 > 135 --------- Alternate Hypothesis
Methodology:
Desired Sample:

We desired a random sample of motorbikes having

considerable market share in same segment with
four variables for analysis:
• Pricing
• Mileage
• Weight
• Ground Clearance
We found below n=9 motorbikes in that range and
obtained the below observations:
Particulars Pricing Mileage Weight Ground
(In (In (In Clearance
Lakhs) Kmpl) KG) (In mm)
Hyosung 5.62 16 240 140
Aquila
PRO
Hyosung 5.92 17 215 165
GT650R
Kawasaki 6.69 16.5 216 170
Versys 60
Kawasaki 4.99 21 186 130
Z650
Kawasaki 5.9 19 193 130
Ninja 650
Benelli 600 6.61 19 243 150
GT
Benelli 6.1 19.5 231 150
TNT
Honda 7.38 20 216 133
CBR650F
Triumph 11.5 18 189 140
Daytona R
Method Used:
We used t-test as our statistical hypothesis test. T test is
used to compare two different set of values. It is generally
performed on a small set of data. T test is generally applied
to normal distribution which has a small set of values. This
test compares the mean of two samples. T test uses means
and standard deviations of two samples to make a
comparison.
SPSS is the software used for doing t-test. It is a software
package used for interactive, or batched, statistical analysis.
The manufacturer of the software is IBM.
First using mean and standard deviation we find the z-score
for each sample.
The formula for t-test is:

𝑥ҧ − 𝜇
𝑡=
𝑠
𝑛
Where:
𝑥ҧ = Sample Mean
µ = Population Mean
s = Sample standard deviation
n = no. of samples
Result & Analysis:
 Pricing Mileage Weight Ground Clearance

T score 1.987579 2.037209 -2.05598 2.115412701

Referring the t-distribution table for level of

significance 95%
Z score = 1.95996 for Right tailed (>)
Z score = -1.95996 for left tailed (<)
Comparison
Pricing:
 Upon comparison of Z score,
 1.95996 < 1.987579
 The Null Hypothesis will get rejected as it falls in
rejection region (right tailed) and alternate
hypothesis will be accepted.

Mileage
 Upon comparison of Z score,
 1.95996 < 2.037209
 The Null Hypothesis will get rejected as it falls in
rejection region (right tailed) and alternate
hypothesis will be accepted.
Ground Clearance
 Upon comparison of Z score,
 1.95996 < 2.037209
 The Null Hypothesis will get rejected as it falls in
rejection region (right tailed) and alternate
hypothesis will be accepted.

Weight
 Upon comparison of Z score,
 -1.95996 > -2.05598
 The Null Hypothesis will get rejected as it falls in
rejection region (left tailed) and alternate hypothesis
will be accepted
 Graphs-

Left Tailed Graph with Shaded area as Rejection

Right Tailed Graph with Shaded area
Region
as Rejection Region
Conclusion -

 Royal Enfield willing to launch its new bike – Royal

Enfield Interceptor 650 should consider following
things:
 The mean price of the vehicle in Interceptor’s
Segment is more than 5.48 Lakhs.
 The mean mileage of the vehicles is more than 17.4
kmpl.
 The mean weight of the vehicles is less than 229 kg.
 The mean ground clearance is more than 135 mm.
Thank you