Hypothesis Testing – Real-World Example

Hypothesis Testing – Real-World Example

Hello, everyone. In today’s discussion post, I will discuss a real-world example of applying a hypothesis test. Supposing a company launches a new product and wants to determine if the new product is more effective than the previous product. It would be possible to test a hypothesis by contrasting the sales levels achieved by the new product with those of the older product. Notably, the null hypothesis states that the two products have no difference in sales, while the alternative hypothesis states that the new product performs better than the old product. The company will be able to determine whether or not there is enough evidence to reject the null hypothesis and come to the conclusion that the new product is more effective by gathering data on the sales of both products and then conduct a statistical hypothesis test on the data.

Numerical Example

Suppose a coffee shop introduces a new type of coffee and wants to know if it’s more popular than its previous blend. They record the number of cups sold of each blend for a week and compile the data. The old blend sold 144 cups, with a standard deviation of 10 cups; the new blend, on the other hand, sold 198 cups, with a standard deviation of 12 cups. A sample size of 50 cups represents each blend. The argument that there is no difference in popularity between the two blends will be the null hypothesis. On the other hand, the argument that the new blend is more popular than the old coffee blend will be the alternative hypothesis. With the findings of the hypothesis test, the coffee shop can determine whether to reject the null hypothesis and conclude that the new blend is more popular than the old one by conducting a two-sample t-test with a significance level of 0.05. Use the standard deviation from the sample, not the population, to complete the hypothesis test.

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For this discussion, create and post a 1-2 minute video describing a real-world example of when a hypothesis test could be used. Your video should also include a numerical example for another student to work through in their response.

Hypothesis Testing – Real-World Example

The example can use real data or data that you make up, such as values for the mean, standard deviation, and sample size. Be sure to note if the standard deviation is from the population or the sample. In your responses to other students, show the work and describe the steps you use to solve that hypothesis example. Video technology does not need to be used in the replies, but you are always welcome to use it! For the videos, you can use recorded PowerPoints, MP4 files, or any video technology where the file can be loaded into the discussion.