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# Advanced Statistics and Quantitative Discussion Questions #1: Identify a quantitative variable (measurement) in your business/organization that has either interval or ratio level of...

Discussion Questions #1:

Identify a quantitative variable (measurement) in your business/organization that has either interval or ratio level of measurement. Obtain at least 10 observations of this variable (measurement). Make up the data if you are not familiar with any Organization.

Purpose: To demonstrate the application of t-test in business.

EXAMPLE: A standard measure that fits these requirements might be product assembly time or efficiency rating (time is a ratio measure); and compared with some sort of National or Company Standard. You can apply t-test hypothesis to see if the average assembly time for a product is different for the 10 observations and compared with the National or Companyâ€™s Standard.

Conduct the t-test hypothesis using your samples (observations for the 10 employees), discuss your findings as a reply to thisforum, and provide feedback to your colleaguesâ€™ examples. Do not upload your calculations or Excel output, it is optional if you decided to do so

Answered Same Day Apr 16, 2023

## Solution

Monica answered on Apr 17 2023
Introduction
This study aims to examine the average hourly wage of employees in a retail company. Hourly wage is a ratio-level variable as it has a true zero point. The data for this study was obtained by randomly sampling 10 employees from the company and recording their hourly wages.
The data is presented in Table 1.
Employee
Hourly Wage
1
\$12.50
2
\$11.75
3
\$13.25
4
\$14.00
5
\$12.00
6
\$15.50
7
\$13.75
8
\$12.25
9
\$11.50
10
\$14.25
Step 1:
Null and Alternative hypothesis is given by,
Employees in a retail company make an average of \$15 per hour.
Employees in a retail company do not make an average of \$15 per hour.
Step 2: Determining the level of significance.
The level of significance for the two-tailed tests.
Step 3: Test statistic calculation.
The t-test statistic is calculated using the below formula,

The mean hourly wage of the sample is \$13.075 and the standard deviation is \$1.29126 obtained in Excel.
Note: The sample size is equal to 10
Substituting the obtained values in the above formula we get the t-test statistic equal to...
SOLUTION.PDF