BA 284

Computer Lab I - Assignment

Due Tuesday Jan 21, 2014

Name ______Chelsea Covert_______

Name _Stephanie Pellegrino

signatures ______________________________ _______________________________

If you are working in a pair, please print each name and provide your signature below
to indicate that both partners shared equally in completing the assignment.
1. Data:

Golf ball data

Par, Inc., is a major manufacturer of golf equipment. Management believes that

Pars market share could be increased with the introduction of a cut-resistant,
longer-lasting golf ball. Therefore the research group at Par has been
investigating a new golf ball coating designed to resist cuts and provide a more
durable ball.
The tests with the coating have been promising, however, one of the researchers
voiced concern about the effect of the new coating on driving distances. Par
would like the new cut-resistant ball to offer driving distance comparable to those
of the current-model golf ball. To compare the driving distances for the two
balls, 40 balls of both the new and the current models were subjected to distance
tests. The testing was performed with a mechanical hitting machine so that any
difference between the mean distances for the two models could be attributable to
a difference in the two models. The results of the tests, with distances measured
to the nearest yard are provided in the Golf ball data.
a. In your own words, briefly describe.
1) The research problem:
Do we have a product that will help us increase our market share or sales? Par
Inc. wants to see if their market share is able to be increased by introducing a
new golf ball design that is cut-resistant and a longer-lasting golf ball compared
to the current model.
2) The study question:
The company is trying to study the distance that the new golf ball can travel
compared to the current model; therefore, does the new coating effect the driving
distance of the ball?
3) The experimental design (methods) of the study:
The experimental method used in the study by Par, Inc. was a two sample t-test
because you are studying two independent groups.
b. Explain why this is a two sample t-test method of sampling instead of a paired
t-test sampling method.

The method of sampling is a two sampled t-test because there are two
independent groups. Therefore, the observations taken about the old golf balls are
not related to the observations taken about the new golf balls.
Summary statistics:

Column n Mean Variance Std. err. Std. dev. MedianRangeMinMax Q1 Q3 Sum

Current 40270.27576.6147441.38396848.7529848
270
34 255 289263275.5 10811
New
40 267.597.948718 1.5648389.8969045
265
39 250 289262 275 10700
c. Use the two-sample t-test assuming unequal variances to determine if the
driving distances differ significantly between the current and the proposed new
golf balls. Copy and paste the Excel output below.
Hypothesis test results:
1 : Mean of New
2 : Mean of Current
1 - 2 : Difference between two means
H0 : 1 - 2 = 0
HA : 1 - 2 > 0
(without pooled variances)

DifferenceSample Diff. Std. Err.

DF
T-Stat P-value
1 - 2
-2.7752.089039676.85213-1.3283616 0.906
d. Using supporting evidence from the analyses above, briefly summarize your
results and make a recommendation to the management of Par, Inc.
Given that the p-value is greater than alpha, the data supports that new design of
golf balls will increase Par. Incs market share.

2. Data:

Food Prices 2000-2007

An article in the Pittsburgh Post Gazette (Jan. 11, 2008) reported a sampling of food prices
from 2000 and again in 2007 entitled Eating Away: Food prices take a bigger bite out of
household budgets. The data stored in the file called, food prices 2000 to 2007 includes a
column for inflation adjusted 2000 prices.
a. In your own words, briefly describe.
1) The research problem:
2) The study question:
3) The experimental design (methods) of the study:

b. Use columns 2000 and 2007and the paired t-test to determine if the 2007 prices are
significantly higher on average than the 2000 food prices. Copy and paste the Excel output
below
t-Test: Paired Two Sample for
Means
2007
1.984
2.4225
82
10
0.9878
54

Mean
Variance
Observations
Pearson Correlation
Hypothesized Mean
Difference
df

2000
1.547
1.5190
46
10

0
9
3.5497
19
0.0031
09
1.8331
13
0.0062
19
2.2621
57

t Stat
P(T<=t) one-tail
t Critical one-tail
P(T<=t) two-tail
t Critical two-tail

c. If your analysis finds a significant increase in food prices, then construct a 90%
confidence interval to estimate how much more on average people can expect to pay in 2007
as compared to 2000.
Differences
Mean
Standard Error
Standard Deviation
Sample Variance
Count
Confidence
Level(90.0%)

0.437
0.1231
08
0.3893
03
0.1515
57
10
0.2256
72

d. The last column, inflation adj 2000 $07, takes the 2000 food prices and adjusts the prices
for normal inflation in 2007. Use this inflated 2000 price column and the 2007 column and
perform another paired t-test. Copy and paste the output below. Does this analysis indicate
that the 2007 food prices are significantly more than the 2000 food prices adjusted for
inflation?

t-Test: Paired Two Sample for

Means

Mean
Variance
Observations
Pearson Correlation
Hypothesized Mean Difference
df
t Stat
P(T<=t) one-tail
t Critical one-tail
P(T<=t) two-tail
t Critical two-tail

2007
1.984
2.42258222
2
10
0.98807144
7
0
9
1.49749809
9
0.08424397
9
1.83311293
3
0.16848795
8
2.26215716
3

Inflation Adj 2000

$07
1.868
2.212262222
10

e. Using all the analyses above, do the data support the headline Eating Away: Food prices
take a bigger bite out of household budgets? Explain.