Indian Institute of Management Bangalore

Introduction to Statistical Methods

Quiz-2
Time: 60 min. Name:___________________
Max Points: 15 Roll No.:_________________
Do not seek any clarifications. State all your assumptions, if any, very clearly.
Answer all questions in the space provided. Do not attach any additional sheets.

Question I (6 Points)

NS Software Systems and Services (popularly known as N4S) has recently recruited
Komala, a quality expert from Institute of International Management, Bilekahalli (IIMB).
She decided to train the employees of N4S in quality awareness as well as the techniques
to be used through a new innovative method, developed specially by her. Dr. Raghav
who is the VP, Corporate Training agreed to experiment with the new method of training,
provided the effectiveness of the training can be measured. Komala and Dr. Raghav
agreed to use a special instrument (as some of the OB experts prefer to call it), which has
to be administered to the trainees before and after the training. Based on the scores of the
instrument, before and after the training, a Quality Capability Motivation Improvement
Index (QCM) can be computed for each of the trainees. They have agreed to use this
index as a measure for the effectiveness of the training and a positive value of the index
indicates effectiveness of the training.

I. It was proposed that a sample of 20 employees would be selected for training under the
new method. For obvious reasons, they decided to do a one sided hypothesis test. The
sample standard deviation of the QCM obtained from these 20 observations was 12.5.

1. Dr. Raghav informed Komala that he is willing to go ahead with the new
method if the sample average of QCM is greater than equal to 4.8327. Based
on this decision, calculate the Type I error that Dr. Raghav is willing to
tolerate. (2)



2. Based on the above, formulate the null and alternate hypothesis.(1)




3. At this stage, Dr. Rahav decided to change the value to 0.025 and suitably
modified the decision rule. The average QCM of the 20 trainees turned out to
be 5.3. Should Dr. Raghav go ahead with the new method of training? (1)



4. Assume that the true average QCM is 0.4673. What is the Type II error that
Dr. Raghav will be committing, based on the decision in question 3 above?(2)

II. Dr. Raghav decided to compare the new method with the old method of training that
the company had been using. He selected a random sample of 60 employees for training
based on the old method and obtained the QCM scores for these 60 employees. The
average for this sample was 0.1 with a sample standard deviation of 9.3. Dr. Raghav
insisted that all values have to be less than or equal to 0.025

1. Test whether the old method is effective or not?(2)



2. Test whether there is a significant difference between the two methods.(5)





3. Consider the results from Question I part (3) and Question II parts (1) and (2).
Are these results consistent? Justify your answer.(2)