Formulate the null and research (alternative) hypothesis and determine the test

Question

Formulate the null and research (alternative) hypothesis and determine the test criteria: Specify the level of significance (Type I error associated with the null hypothesis), determine the test statistic (the appropriate statistical test as mentioned under point 5 above), determine the critical values (and region(s) if applicable)

Severity of company's finacial problems Type of intervention Financial Stress Score 1 Intervention #1 6 1 Intervention #1 6 1 Intervention #1 7 1 Intervention #1 7 1 Intervention #1 7 1 Intervention #1 6 1 Intervention #1 5 1 Intervention #1 6 1 Intervention #1 7 1 Intervention #1 8 1 Intervention #1 7 1 Intervention #1 6 1 Intervention #1 5 1 Intervention #1 6 1 Intervention #1 7 1 Intervention #1 8 1 Intervention #1 9 1 Intervention #1 8 1 Intervention #1 7 1 Intervention #1 7 2 Intervention #1 7 2 Intervention #1 8 2 Intervention #1 8 2 Intervention #1 9 2 Intervention #1 8 2 Intervention #1 7 2 Intervention #1 6 2 Intervention #1 6 2 Intervention #1 6 2 Intervention #1 7 2 Intervention #1 7 2 Intervention #1 6 2 Intervention #1 7 2 Intervention #1 8 2 Intervention #1 8 2 Intervention #1 8 2 Intervention #1 9 2 Intervention #1 0 2 Intervention #1 9 2 Intervention #1 8 1 Intervention #2 6 1 Intervention #2 5 1 Intervention #2 4 1 Intervention #2 5 1 Intervention #2 4 1 Intervention #2 3 1 Intervention #2 3 1 Intervention #2 3 1 Intervention #2 4 1 Intervention #2 5 1 Intervention #2 5 1 Intervention #2 5 1 Intervention #2 6 1 Intervention #2 6 1 Intervention #2 7 1 Intervention #2 6 1 Intervention #2 5 1 Intervention #2 7 1 Intervention #2 6 1 Intervention #2 8 2 Intervention #2 7 2 Intervention #2 5 2 Intervention #2 4 2 Intervention #2 3 2 Intervention #2 4 2 Intervention #2 5 2 Intervention #2 4 2 Intervention #2 4 2 Intervention #2 3 2 Intervention #2 3 2 Intervention #2 4 2 Intervention #2 5 2 Intervention #2 6 2 Intervention #2 7 2 Intervention #2 7 2 Intervention #2 6 2 Intervention #2 5 2 Intervention #2 4 2 Intervention #2 4 2 Intervention #2 5 1 Placebo 2 1 Placebo 1 1 Placebo 3 1 Placebo 4 1 Placebo 5 1 Placebo 4 1 Placebo 3 1 Placebo 3 1 Placebo 3 1 Placebo 4 1 Placebo 5 1 Placebo 3 1 Placebo 1 1 Placebo 2 1 Placebo 4 1 Placebo 3 1 Placebo 5 1 Placebo 4 1 Placebo 2 1 Placebo 3 2 Placebo 4 2 Placebo 5 2 Placebo 6 2 Placebo 5 2 Placebo 4 2 Placebo 4 2 Placebo 6 2 Placebo 5 2 Placebo 4 2 Placebo 2 2 Placebo 1 2 Placebo 3 2 Placebo 2 2 Placebo 2 2 Placebo 3 2 Placebo 4 2 Placebo 3 2 Placebo 2 2 Placebo 2 2 Placebo 1

Explanation / Answer

Formulate the null and research (alternative) hypothesis and determine the test criteria: Specify the level of significance (Type I error associated with the null hypothesis), determine the test statistic (the appropriate statistical test as mentioned under point 5 above), determine the critical values (and region(s) if applicable).

Ans:

Null Hypothesis: Financial Stress Score at two levels of Severity of company's financial problems are same.

Alternative Hypothesis: Financial Stress Score at two levels of Severity of company's financial problems are not same.

Null Hypothesis: Financial Stress Score at three types of Type of intervention are same.

Alternative Hypothesis: Financial Stress Score at three types of Type of intervention are not same.

Test statistics for the above tests are F.

Two-way ANOVA: Score versus Severity, intervention

Source DF SS MS F P
Severity 1 0.075 0.075 0.04 0.848
intervention 2 263.517 131.758 65.04 0.000
Error 116 235.000 2.026
Total 119 498.592

S = 1.423 R-Sq = 52.87% R-Sq(adj) = 51.65%

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