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CASE STUDY
Hypothesis Testing
Holmes, Illowsky & Dean (2017) assert that a hypothesis test is a test that involves collecting and analyzing data from a sample. Through the hypothesis, a statistician can be able to make a decision based on the analysis of data. An individual can also choose to reject the null hypothesis after analyzing data. When testing hypothesis an individual should state the null hypothesis, stage alternative hypothesis, ascertain the significance level, compute the P-value, and then make a conclusion.
Today managers use hypothesis testing to made management decisions (Sharma, 2013). Hypothesis testing lies in the concept of inferential statistics and it is used to prove various claims. The purpose of this report is to illustrate how statistical analysis can be used to forecast the winner of an election in the first case. In the second case, a hypothesis will be conducted to decide whether the shipping plan will be lucrative or not
Case 1: Election Results
In Case 1 it is very important to analyze a one-sample hypothesis test to ascertain if the networks are supposed to announce the results at 8.01 p.m., whereby George W. Bush who is a Republican candidate will win the State of Florida over Al Gore a democratic candidate. The size of the sample that is used if the number of voters is 765 registered voters. In the results, George W. Bush got 407 votes while Al Gore got 358 votes. According to the network, a winner is announced if one has won more than 50% of the total votes. The polls close at 8.00 p.m.
Based on the results obtained from the samples, one sample hypothesis should be conducted to ascertain if the networks are supposed to announce the winner at 8.01 p.m. George W. Bush who is a Republican candidate will win the state of Florida.
Using 0.1 as the significance level, the analysis that is used is a one-sample hypothesis test. The formula that will be used to calculate the percentage votes of George W. Bush is
Percentage=407765=0.53
In this case, George W. Bush will garner 53% while Al Gore will garner 47%. Therefore the alternative and the null hypothesis is as follows. Null hypothesis H0:p≥0.5 while the alternative hypothesis isH0:p<0.5. This makes the equation a one-sample test. This is a type of statistical test where a researcher concentrates on one side of the distribution. The critical X value is xα=x0.10=- 1.28
Thus the formula can be written as follows (i) x=p-PPQn
(ii) X=0.53-0.50.5*0.5765
(iii) X is equal to 1.66
Description

Hypothesized

Observed

P (In decimal form)

0.50

0.53

P (Infraction form)

383/765

407/765