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Test of Hypothesis Concepts and Implementation



Every student (no exceptions) must write one paper on the implementation of statistical techniques in a real life problem.   Each paper length should be around two pages and students must select the topic from their current place of work, from their work experience, or from an area of interest.  The selected topic must be a reasonable and appropriate for a typical MBA class. The instructor must approve the topic.


Each paper must reflect an understanding of the concepts and how a technique is implemented in real life, and it should not be an attempt to solve a textbook problem so actual numbers are not important, and no final answer is expected.



Techniques covered in papers must be selected from the following subjects:


  • Test of hypothesis concepts and implementation,


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Hypothesis based development has taken center stage in today’s world. It is applied in sports, industrial and manufacturing plants, schools, and even predicting polls ratings. It guides the development of new products and services and organizational restructures. It involves a series of experiments that are iterated until the desired outcome is proven correct or wrong. The proposed set of solutions that need to be tested is called a hypothesis. The hypothesis is often tested using concepts such as customer discovery projects or quality assurance tests. The projects often seek to examine a set of hypothesis and identify their effect in the given environment.

Let us look at an example to understand the concept of testing and implementing hypothesis. A look at the presidential polling in Country Y shows that Mr. X’s support rating is at eight percent. One week later his rating is at 11 percent. The poll results were based on 500 registered voters.  Supporters of Mr. X say that the change represents the people discontentment with other parties, and Mr. X represents a new breed of politicians that are in touch with the ordinary people. Media houses speculate a 50 percent surge in Mr. X’s poll rating and popularity. News reporters say that the polls have a plus or minus 2.5 margins of error. Skeptics start questioning the validity of the media reports. The public seems disinterested in politics. Therefore, to ascertain the validity of the media reports certain hypotheses must be tested. One such is a null hypothesis that states: the level of support for Mr. X has not changed in one week as indicated by the polls. To ascertain this hypothesis one need to check whether the data provided is consistent with the hypothesis.

If the tests reveal that the null hypothesis is correct, then the poll results were sourced from the same population. The tests included selecting 500 registered voters. Analysis of collected samples revealed that 40 of them supported Mr. X for the first time and 55 to for the second time. A total of two tests implies that 100 people participated in the test, with Mr. X having 95 supporters. Therefore, Mr. X had 9.5 percent of the votes.