Posted: August 1st, 2016

What is the selected level of significance your team has chosen?

Your team has been assigned a research project by senior management. The company has been experiencing increased shipping damage costs. Your team has been instructed to conduct a two sample test to determine if shipping damages are equal for packages equal to or below 15 pounds (Package A) vs. packages greater than 15 pounds (Package B). The CEO must report to the Board of Directors if the target delivery time was achieved. Data available after a 6 month test: a) The mean shipping damage for Package A was $25.16 with a standard deviation of $2.11. b) The mean shipping damage for Package B was $29.16 with a standard deviation of $4.65. c) The sample size is equal for both samples. n = 36 d) Unknown population variances, assumed equal (t test) The CEO is expecting the following in a professional report: 1. Describe the size and type of the sample needed to complete the project. (refer to RES 341) 2. Clearly written verbal hypothesis. 3. Clearly stated numerical hypothesis 4. Will the research project require a directional test? (i.e., one tail, two tail) 5. What is the selected level of significance your team has chosen? Why? What is the critical value associated with the chosen level of significance? 6. What is the value of the test statistic? 7. Conclusion