QUESTION
1. The marketing team of WSES believes that the average sales value of the leads that
they receive is at least 8 million dollars. The marketing team believes that the
standard deviation of sale value is about 2 million dollars. Use an appropriate
hypothesis test to check whether the average sales value in the population is at least
8 million dollars.
2. Change the null and alternative hypotheses used by you in question 1 and conduct the
test. What will be your conclusion based on the interchange of null and alternative
hypotheses? What do you learn from your answers to questions 1 and 2?
3. Jason McCullagh, senior marketing manager at WSES doubted the value of standard
deviation provided by the marketing team. Jason argued that there is no way the
marketing team could have known the population standard deviation for the sales value,
since the population itself is unknown. Do you agree with Jason McCullagh? If yes,
perform the test again using an appropriate hypothesis test.
4. Hendry Jackson also claims that the average sales value of “learnsys” projects is higher
than that of “Finsys” projects. Check whether John Crocker is correct at 5%
significance.
Sample Solutions
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