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Business Case # 2
Chi-Squared Tests
1. Ho : o - a = 0
Ha : o - a 0 (two-tailed test)
2. = 0.05 [C & N unknown; pooled t-test]
3. Reject Ho if tstat tdf, = t78,0.05 = 1.665
*df = n1 + n2 2 = 40 + 40 2 = 78
4.
5.
6. The mean driving distance of the current model golf balls and new model golf balls are not
significantly different.
Recommendation:
From the data above, Pars new model golf ball does not only have a new coating, which
makes it cut-resistant and long lasting, but also offers driving distances comparable to those of
the current model golf ball.
Par, Inc. can introduce the new golf ball to increase their market share since the new golf
ball has an improved coating and is similar to the current model golf ball when it comes to the
driving distance.