HYPOTHESIS TESTING & VARIANCE

Unit 4 - Hypothesis Testing & Variance

Unit 4 - Hypothesis Testing & Variance

Introduction

This paper is based on the application of two-tailed hypothesis test on the variables that are gender and position based on intrinsic and extrinsic satisfaction using the 0.05 level of significance which will guide the managers in making their decisions. Besides it, the paper also focuses on the Z-Tests, T-Tests, samples and populations which are important concepts to understand the hypothesis testing.

Test of Hypothesis 1: Gender and Intrinsic Satisfaction

Hypotheses

HO: Males = Females

HA: Males Females

The Test

t-Test: Two-Sample Assuming Unequal Variance

 

Males

Females

Mean

5.07143

5.08571

Variances

0.59914

0.64029

Observations

21

21

Mean Differences

0

df

40

t Stat

- 0.05880

P (T< = t) one tailed

0.47670

t Critical one tailed

1.68385

P (T< = t) two tailed

0.95340

t Critical two tailed

2.02108

 

State your decision

From the above T-test, it can be observed that is the null hypothesis is accepted that is mean of males and females are equal for intrinsic satisfaction.

Explanation of decision made

The analysis shows that we fail to reject the null hypothesis as the level of significance is greater than 0.05 that is 0.9. In addition to this, the T statistic is -0.05 and the critical t values are -2.02 and 2.02. For that reason, the test statistic s of -0.05 is lies under the critical value of 2.02; we fail to reject the null hypothesis.

Applications for managers

From the above analysis, it can be observed that the intrinsic satisfaction of people serving the company between males and females is same. This results shows that the managers should focus on the intrinsic satisfaction of people serving the organization because it will help managers motivating the employees or team members with the same level of action taken as means are equal for both males and females.

Test of Hypothesis 2: Position and Extrinsic Satisfaction

Hypotheses

HO: Males = Females

HA: Males Females

The Test

t-Test: Two-Sample Assuming Unequal Variance

 

Hourly Employee

(Overtime Eligible)

Salaried Employee

(No ...