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Name: 3. A major oil company would like to improve its tarnished image following

ID: 3336152 • Letter: N

Question

Name: 3. A major oil company would like to improve its tarnished image following a large oil spill. It s marketing department develops a short television commercial and on a sample of n = 7 participants. People's attitudes about the company tests it are measured with a short questionnaire, both before and after viewing the commercial. Was there a significant change? The data are as follows: Person After 15 13 18 12 16 10 19 Before Difference 15 10 14 10 a) What type of study design is this? b) What is your null and alternative hypothesis? Record both the statement and the statistical hypotheses using appropriate notation.

Explanation / Answer

Solution:

Part a

This is a paired t test.

Part b

The null and alternative hypothesis for this test is given as below:

Null hypothesis: H0: There is no any statistically significant change in the people’s attitudes about the company before and after viewing the commercial.

Alternative Hypothesis: Ha: There is a statistically significant change in the people’s attitudes about the company before and after viewing the commercial.

H0: µ1 = µ2 Vs H0: µ1 µ2

The level of significance is given as 0.05.

= 0.05

The test statistic formula is given as below:

t = Dbar / [Sd/sqrt(n)]

Calculation table is given as below:

Before

After

Di

(Di - DBar)^2

15

15

0

56.25

11

13

-2

30.25

10

18

-8

0.25

11

12

-1

42.25

14

16

-2

30.25

1

10

-9

2.25

11

19

-8

0.25

Total

-30

161.75

Sample size = n = 7

Degrees of freedom = n – 1 = 7 – 1 = 6

Dbar = -30/7 = -7.5

Sd = 7.3428

Standard error = Sd / sqrt(n) = 7.3428 / sqrt(7) = 2.775317532

t = Dbar / [Sd/sqrt(n)]

t = -7.5 / [7.3428/sqrt(7)]

t = -2.7024

Lower critical value = -2.4469

Upper critical value = 2.4469

P-value = 0.0355

(By using t table)

P-value < = 0.05

So, reject the null hypothesis that there is no any statistically significant change in the people’s attitudes about the company before and after viewing the commercial.

Part c

Conclusion:

There is sufficient evidence to conclude that there is a statistically significant change in the people’s attitudes about the company before and after viewing the commercial.

Before

After

Di

(Di - DBar)^2

15

15

0

56.25

11

13

-2

30.25

10

18

-8

0.25

11

12

-1

42.25

14

16

-2

30.25

1

10

-9

2.25

11

19

-8

0.25

Total

-30

161.75

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