#HW2 - Tran Thi Thanh Hoa

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SBE204 – BUSINESS STATISTIC 2

NAME: TRAN THI THANH HOA


ID: 1901095
Section 11.1
Exercise 6
Exercise 11
Given:
Section 11.2
Exercise 19
CASE STUDY

Q.1) Use appropriate descriptive statistics to summarize the training time data for each
method. What similarities or differences do you observe from the sample data?

Some descriptive statistics to summarize the training time data is as follows:

Current Training Method Proposed Computer - Assisted Method


Mean 75.06557377 Mean 75.42622951
Median 76 Median 76
Mode 76 Mode 76
Range 19 Range 13
Minimum 65 Minimum 69
Maximum 84 Maximum 82
Count 61 Count 61

From the sample data we observe that, the Median and Mode of both the training methods is
same. It implies that in both the methods, the central value of sample data is equal (76 hours).
Also, the range of Current Training Method (19) is more than the Proposed Computer – Assisted
Method (13), it shows that sample data of current training method is widely dispersed as
compared to that of proposed computer – assisted method.
Frequency Distribution of the Sample Data is shown below.

Current Training Method Proposed Computer Assisted Method


Number Frequency Number Frequency
65 1 65 0
66 1 66 0
67 0 67 0
68 0 68 0
69 3 69 2
70 4 70 0
71 1 71 1
72 6 72 6
73 5 73 4
74 6 74 5
75 3 75 10
76 8 76 12
77 6 77 11
78 5 78 6
79 6 79 1
80 1 80 2
81 2 81 0
82 2 82 1
83 0 83 0
84 1 84 0
Total 61 Total 61

Q.2) Use the methods of Chapter 10 to comment on any difference between the population
means for the two methods. Discuss your findings.

Current Training Method Proposed Computer - Assisted Method

Mean 75.06557377 Mean 75.42622951


Standard Error 0.505093646 Standard Error 0.320909752
Median 76 Median 76

Point Estimator of the -0.360655738


difference between two
population means

From the above descriptive statistics, we can observe that the mean completion time of Current
Training Method (75.06 hours) and mean completion time of Proposed Computer - Assisted
Method (75.42 hours) are nearly the same. It can be similarly observed from point estimator of
the difference between two population means, which equals to -0.360. It implies that if any of the
either system is used for training, the completion time by a student for the course will be same.
Q.3) Compute the standard deviation and variance for each training method. Conduct a
hypothesis test about the equality of population variances for the two training methods.
Discuss your findings.

Current Training Method Proposed Computer - Assisted Training


Standard Deviation 3.944907487 Standard Deviation 2.506385288
Sample Variance 15.56229508 Sample Variance 6.281967213

The standard deviation of Proposed Computer - Assisted (2.506 hours) is less as compared to the
standard deviation of Current Training Method (3.944 hours), which indicates Proposed
Computer - Assisted Training Method has less variation.
Hypothesis:
F-Test Two-Sample for Variances (α = 0.01)
  Current Proposed
Mean 75.06557377 75.42622951
Variance 15.56229508 6.281967213
Observations 61 61
df 60 60
F 2.477296451
P(F<=f) one-tail 0.000289016
F Critical one-tail 1.836259361  

As value of F (2.477) is greater than F critical (1.83), Null Hypothesis (Ho) is rejected. We can
conclude that the two methods differ in terms of variance. The data shows that the Proposed
Computer – Assisted Method has the smaller variance indicating that students trained under this
method are more consistent in terms of completion time.
Q.4) What conclusion can you reach about any differences between the two methods?
What is your recommendation? Explain.

Based on the data available, the Proposed Computer - Assisted Method is preferred. The two
methods are very close in terms of mean completion times with the 95% confidence interval of
the difference being -1.55 to 0.83 hours. However, the Proposed Computer Assisted Method has
a significantly lower variance. Under the Proposed Computer Assisted Method, students are
more likely to complete the training in approximately the same amount of time. There should be
less chance of faster students waiting for slower students to complete the training.
Q.5) Can you suggest other data or testing that might be desirable before making a final
decision on the training program to be used in the future?

Before making a final decision, we recommend that data must be collected on the amount of
qualitative learning that a student gets from the two methods. This “time data” only favors
switching to the Proposed Computer - Assisted Method. It is necessary to know the difference
between the quality of training provided by both the methods. Both groups could be given an
examination at the end of the training program. Analysis of the examination scores would
determine if the programs were similar or different in terms of the amount of learning provided
by the programs. This analysis should be made prior to the final decision to switch to the
proposed method.

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