CASE STUDY ANALYSIS

REPORT

SUBMITTED TO: DR JAGADEESH R

DONE BY:

DAKSHITH AMSU GOWDA

NANDINI SHETTY JAYA

PRANAV C P

SANJANA V
 1. Formulate and present the rationale for a hypothesis test that Par could use to
compare the driving distances of the current and new golf balls.

Hypothesis testing
We need to formulate and present the rationale for the hypothesis testing so that Par Inc could use
to compare the driving distance between the current and new golf balls. 40 balls of both current and
new models have been used to make the distance test.

1 – Mean distance of current balls

2 – Mean distance of new balls

As this is a two-tailed test, null hypothesis and alternative hypothesis are formulated as follows:

H0: µ1=µ2 (Mean distance of current balls = mean distance of new balls).

H1: µ1≠µ2 (Mean distance of current balls  mean distance of new balls)

Null Hypothesis H0:m1 m1=m2 Not rejected

2. Analyse the data to provide the hypothesis testing conclusion. What is your
recommendation for Par, Inc.?

Analysis of data
• Specifying the significance value as 0.05, then Z = 1.96
• We assume the rejection criteria as Reject H0 or not reject H0, if F calculated > F critical or P
value < 0.05, .

  Current New
Sample size, n 40 40
Sample mean 270.275 267.5
Standard deviation 8.75 9.90
Significance value 0.05 0.05
Degree of freedom 39 39
Variance 76.61474359 97.94871795
     
F-test calculated 1.28
F test from Excel (critical) 1.704

Formula used:
Degree of freedom = n-1

F- test calculated = Large sample variance / Small sample variance

  current new
Mean 270.28 267.50
Variance 76.61 97.95
Observations 40.00 40.00
Pooled Variance 87.28  
Hypothesized Mean
Difference 0.00  
df 78.00  
t Stat 1.33  
P(T<=t) one-tail 0.09  
t Critical one-tail 1.66  
P(T<=t) two-tail 0.19  
t Critical two-tail 1.99  

By the analysis, Current model has a longer range of distance based on the 40 samples with a mean
of 270.28 compare to 267.500 for new model. Standard deviation of current model is 8.75 and new
model is 9.89. Although, the two value of mean is different but standard deviation also is quite large
so we can say they are quite same.

P value > 0.05=α.

Also, F calculated < F critical

Therefore, the decision rule will be,

1. Do not reject H0.

Recommendation:
By the analysis of data, we can recommend Par. Inc that, they should not launch the new model
because the new model has no improvements compared to the current model of golf balls.

3. Provide descriptive statistical summaries of the data for each model.

Current model

Current
   
Mean 270.275
Standard Error 1.383968421
Median 270
Mode 272
Standard Deviation 8.752984839
Sample Variance 76.61474359
Kurtosis -0.762587222
Skewness 0.306169371
Range 34
Minimum 255
Maximum 289
Sum 10811
Count 40

New model

New
   
Mean 267.5
Standard Error 1.564837994
Median 265
Mode 263
Standard Deviation 9.896904463
Sample Variance 97.94871795
Kurtosis -0.514586551
Skewness 0.239810448
Range 39
Minimum 250
Maximum 289
Sum 10700
Count 40

4. What is the 95% confidence interval for the population mean driving distance of each
model, and what is the 95% confidence interval for the difference between the means of
the two populations?
Population mean with 95% of confidence interval

For current model

Sample size, n 40
Sample mean 270.275
Standard deviation 8.75 1. Standard error = /n
Significance value 0.05
Degree of freedom 39
2. Margin of error =
Standard error 1.384
Margin of error 1.838
t-value * Standard of error

Lower confidence level 268.437

For new model

Sample size, n 40
Sample mean 267.5
Standard deviation 9.90
Significance value 0.05
Degree of freedom 39
Standard error 1.56
2.07867069
Margin of error 2

Lower confidence level 265.421

There is 95% of probability that the population mean is between 268.43 and 272.113 for the current
model while 265.421 and 269.579 for the new model.

By this we can say that there is no much significance difference of driving distance between the
current model and the new model.

5. Do you see a need for larger sample sizes and more testing with the golf balls?
Discuss
The larger the sample size the smaller the standard deviations which means point estimator of
mean will become more precise. Hence there is no need to take larger sample size.

CONCLUSION
The business should carry out more research on the enhanced cut-resistant. Before finishing and
releasing the product, Par Inc. should take into consideration more elements than only the driving
distance, such as costs, the availability of suppliers, and the like. Considering how expensive this
project will be, the company must carefully consider both effectiveness and efficiency. The project's
primary goal is to expand market share; anything else is secondary. The main goal is to increase
earnings so that growth may be sustainable.