University of Southeastern Philippines
eBA 201 Managerial Statistics
Exercise 4
Name: Nathan Kit A. Berro
1. The manager of an automobile dealership is considering a new bonus plan designed to
increase sales volume. Currently, the mean sales volume is 14 automobiles per month. The
manager wants to conduct a research study to see whether the new bonus plan increases
sales volume. To collect data on the plan, a sample of sales personnel will be allowed to
sell under the new bonus plan for a one-month period.
a. Formulate the null hypothesis and the appropriate alternative hypothesis for this research.
Answer:
Null Hypothesis (H0) = There is no significant difference in sales volume using the new bonus
plan.
Alternative Hypothesis (H1) = There is a significant difference in sales volume using the new bonus
plan.
b. Comments on the conclusion when Ho cannot be rejected
Answer:
When H0 is true, we conclude that there is no significant difference in sales volume using the new
bonus plan.
c. Comment on the conclusion when Ho can be rejected.
Answer:
When H0 is false, we conclude that there is significant difference in sales volume using the new
bonus plan. Thus, the bonus plan can be implemented and use.
2. Because of high production-changeover time and costs, a manager of a manufacturing firm
must convince the owner that a proposed manufacturing method reduces costs before the
new method can be implemented. The current production method operates with a mean
cost of Php2,200.00 per hour. A research study will measure the cost of the new method
over a sample production period.
a. Formulate the null hypothesis and the appropriate alternative hypothesis for this research.
Answer:
Null Hypothesis (H0) = There is no significant difference in reducing production cost using the
new method.
Alternative Hypothesis (H1) = There is a significant difference in reducing production cost using
the new method.
eBA 201 Managerial Statistics
Exercise 4
Name: Nathan Kit A. Berro
1. The manager of an automobile dealership is considering a new bonus plan designed to
increase sales volume. Currently, the mean sales volume is 14 automobiles per month. The
manager wants to conduct a research study to see whether the new bonus plan increases
sales volume. To collect data on the plan, a sample of sales personnel will be allowed to
sell under the new bonus plan for a one-month period.
a. Formulate the null hypothesis and the appropriate alternative hypothesis for this research.
Answer:
Null Hypothesis (H0) = There is no significant difference in sales volume using the new bonus
plan.
Alternative Hypothesis (H1) = There is a significant difference in sales volume using the new bonus
plan.
b. Comments on the conclusion when Ho cannot be rejected
Answer:
When H0 is true, we conclude that there is no significant difference in sales volume using the new
bonus plan.
c. Comment on the conclusion when Ho can be rejected.
Answer:
When H0 is false, we conclude that there is significant difference in sales volume using the new
bonus plan. Thus, the bonus plan can be implemented and use.
2. Because of high production-changeover time and costs, a manager of a manufacturing firm
must convince the owner that a proposed manufacturing method reduces costs before the
new method can be implemented. The current production method operates with a mean
cost of Php2,200.00 per hour. A research study will measure the cost of the new method
over a sample production period.
a. Formulate the null hypothesis and the appropriate alternative hypothesis for this research.
Answer:
Null Hypothesis (H0) = There is no significant difference in reducing production cost using the
new method.
Alternative Hypothesis (H1) = There is a significant difference in reducing production cost using
the new method.
