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Hypothesis Testing Final

The document discusses hypothesis testing on sales data from Mahindra & Mahindra. It tests two hypotheses: 1) whether average car sales before and after the COVID pandemic differed, and 2) whether average sales of different Mahindra models were the same. For the first test, a t-test showed that average sales were lower in 2021 than 2019, rejecting the null hypothesis. For the second, an ANOVA test found average sales differed between models, also rejecting the null hypothesis. Both analyses supported the conclusion that COVID impacted Mahindra's sales.

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Dhruvin Sakariya
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48 views14 pages

Hypothesis Testing Final

The document discusses hypothesis testing on sales data from Mahindra & Mahindra. It tests two hypotheses: 1) whether average car sales before and after the COVID pandemic differed, and 2) whether average sales of different Mahindra models were the same. For the first test, a t-test showed that average sales were lower in 2021 than 2019, rejecting the null hypothesis. For the second, an ANOVA test found average sales differed between models, also rejecting the null hypothesis. Both analyses supported the conclusion that COVID impacted Mahindra's sales.

Uploaded by

Dhruvin Sakariya
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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HYPOTHESIS

TESTING IN
STATISTICS
Group - 13
Kuladeep Behera (22PGDM050)
Al Amin Sarkar (22PGDM060)
YaduKrishna MR (22PGDM061)
Dhruvin Sakariya (22PGDM049)
Jagadesh R (22PGDM031)
INTRODUCTION
 Hypothesis testing is an act in statistics whereby an analyst tests an assumption regarding
a population parameter.
 Types of Tests Performed
 T-Test
 ANOVA Test

 The T-test in hypothesis was invented by William Sealy Gosset


 ANOVA test is invented by Ronald Fisher

Five Steps in Hypothesis Testing:


• Specify the Null Hypothesis.
• Specify the Alternative Hypothesis.
• Set the Significance Level (a)
• Calculate the Test Statistic and Corresponding P-Value.
• Drawing a Conclusion.
RESEARCH QUESTION
 Did COVID affect the sales of Mahindra & Mahindra?
OBJECTIVE
 The main objective of this Hypothesis testing is to compare the sales data of Mahindra &
Mahindra automobile company during the years 2019 and 2021.
 This testing helps us to understand the sales before the COVID pandemic and after the
COVID pandemic.
HYPOTHESIS
H0 Average car sold by Mahindra before and after pandemic is equal in both years..

H1 Average car sold by Mahindra before and after penzdamic is not equal in both years..
METHODOLOGY

T-TEST: PAIRED TWO SAMPLE FOR MEANS


DATA ANALYSIS
Sl. No. MONTHS (2019)UNIT SOLD (2021)UNIT SOLD 2019UNIT 2021UNIT
 
1 JANUARY 44907 33471 SOLD SOLD
Mean 37065.16667 29404.5
2 FEBRUARY 45110 24012
Variance 48269402.15 44755933
3 MARCH 50117 33024
4 APRIL 36250 32056 Observations 12 12
5 MAY 36929 15052 Pearson Correlation 0.088488438  
6 JUNE 36689 29260 Hypothesized Mean Difference 0  
7 JULY 31705 38284 df 11  
8 AUGUST 27362 24302 t Stat 2.88177743  
9 SEPTEMBER 32331 21918 P(T<=t) one-tail 0.007461878  
10 OCTOBER 41185 34483 t Critical one-tail 1.795884819  
11 NOVEMBER 31327 33916 P(T<=t) two-tail 0.014923757  
12 DECEMBER 30870 33076 t Critical two-tail 2.20098516  
INFERENCE
 In the above test P value is 0.00746187843740636 which is less than 0.05 and t stat is
2.881777743 which is greater than t critical i.e 1.7958848119 . Hence, we can reject the null
Hypothesis and Alternative hypothesis is proved.
HYPOTHESIS
H0 Average sales of Mahindra & Mahindra's different model is same .
H1 Average sales of Mahindra & Mahindra's different model is not same.
METHODOLOGY

ANOVA: SINGLE FACTOR


DATA ANALYSIS
SUMMARY
Mahindra & Mahindra diff. Groups Count Sum Average Variance
Aug-20 Aug-21
Models
44044 4 6236 1559 535847.3333
XUV300 1098 6861 44409 4 18068 4517 3789871.333

XUV500 919 2383 ANOVA

Source of Variation SS df MS F P-value F crit


SCORPIO 1674 3606

Between Groups 17499528 1 17499528 8.090922849 0.029394623 5.987377607


BOLERO 2545 5218
Within Groups 12977156 6 2162859.333

Total 30476684 7        
INFERENCE
 Where p-value is 0.029394623 which is less than 0.05
 And F value is 8.090922849 is greater than F critical i.e 5.987377607. Hence Null hypothesis
is rejected and the alternative hypothesis is proved.
CONCLUSION
 The sales of Mahindra & Mahindra automobiles are different, hence alternative hypothesis is
proved.
 The COVID pandemic has affected average sales. The sales in 2021 is less when compared to
2019.
THANK YOU

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