The t Statistic - Essay Example

The null hypothesis is based on the claim of the sales manager that the annual average sale of the company/ purchases done by the customers is greater than $14,000. The null and alternate hypotheses would be as follows, The t-test conducted with the above mentioned descriptive statistics reveals that t(α/2,19) = 0.38 is less than the critical value of t = -2.093, therefore the null hypothesis is not rejected and the sales manager’s claim is considered as true. The data shown in Table 2.0 is taken from the case study named HH Industries (Levin et al., 2009, p.49).

The data comprises of total number of orders per day for the first and last quarters. The null hypothesis is based on the claim of the sales manager that the sales figures are steady throughout from first quarter to last. The data selected is from the first and last quarters. The null hypothesis in this case would be that the average total number of orders per day for the first and last quarters is equal. The null and alternate hypotheses would be as follows, The t-test was conducted on two samples of number of orders from first and last quarters.

Observing the t-value = - 6.9, it is concluded that the H0 is rejected. The µ1 ≠ µ2. There is a significant difference between the average number of orders booked per day for first and last