Question
A training director wishes to find out whether a particular training programme increases the efficiency of the employees. He plans to take a random sample of employees and record their efficiency rating before the training starts. After the completion of the programme, the efficiency of the same sample of employees is recorded as given in the table below. At 0.05 level of significance do you reject or accept the null hypothesis
H 0 : µd = 0 against H1 : µd > 0
where µd = 0 is the mean of the difference?Answer :
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To test whether the training program increases efficiency, we perform a paired t-test using the differences between post-training and pre-training efficiency ratings. Let the differences be $d_i = \text{Post}_i - \text{Pre}_i$. Step 1: State hypotheses $$ H_0: \mu_d = 0 \quad \text{(no increase in efficiency)} $$ $$ H_1: \mu_d > 0 \quad \text{(training increases efficiency)} $$ Step 2: Compute the differences $d_i$ Assume the efficiency ratings are (example values, since table not provided): | Employee | Pre | Post | Difference $d_i$ | | -------- | --- | ---- | ---------------- | | 1 | 70 | 75 | 5 | | 2 | 65 | 68 | 3 |
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