Vietnam National University, Hanoi School of Business                                    

144 Xuan Thuy, Cau Giay District, Hanoi, Vietnam, Tel. 84-4-7680456    Fax: 84-4-7680455    www.hsb.edu.vn

MANAGERIAL REPORT

                                   To: Board of Directors

                               From: Nguyen Huu Hung (Mr.) ReMBA#7

                                   Date: 4th March 2009

                                   

Dear Sir or Madam,

This is my full report about Par, Inc., and Skaff Application Company. I used statistics analysis to express the result.

Case 1: Par, Inc.,

Par, Inc. has produced a new type of golf ball. The company wants to know if this new type of golf ball is comparable to the old ones. Therefore they did a test, which consists out of 40 trials with the current and 40 trials with the new golf balls. The testing was performed with a mechanical fitting machine so that any difference between two the mean distanced for the two models could be attributed to a difference in the two models. The purpose of this managerial report is to provide a deep statistics analysis so that Par, Inc.,’s Board of Directors can rely on.

We use Hypothesis Testing to test the mean (of normal distribution) of the driving distances of the current and new golf balls.

For the current balls:

  • Number of observations:
  • Population mean:
  • Sample mean:
  • Standard deviation:

For the new balls:

  • Number of observations:
  • Population mean:
  • Sample mean:
  • Standard deviation:

Null Hypothesis : μ1 - μ = 0 (the driving distances of the current balls and the new balls are equal)
Alternative Hypothesis : μ1 - μ  0 (the driving distances of the current balls and the new balls are not equal)

The decision rule is:

Reject  if   or   

Where:                 Hypothesized mean difference

                 Sample standard deviation of difference

                 n  :   The sample size (number of pairs)

Join now!

  • Descriptive statistics of the two sample:

 and  

Then  and

Based on the above value we see that , that means we can not reject the null hypothesis or the driving distances of the current balls and new balls are equal.

  • What is P-value?

P-value = 2P(Z>1.33) = 2*0.092 = 2*(0.5- 0.4082)= 0.184 > 0.05 ()  we can not reject the null hypothesis or the driving distances of the current balls and new balls are equal.

  • 95% CI for the population means of the two population:

= 2.775 – 1.962.775 + 1.96

= (-1.319 ...

This is a preview of the whole essay