HYPOTHESIS TESTING AND MANAGERIAL DECISION MAKING Name;

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HYPOTHESISTESTING AND MANAGERIAL DECISION MAKING

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Mostdecision makers in an organization often engage in hypothesistesting, though some may not be aware of it. It thus necessitatesthat a deliberate formal exercise of hypothesis testing be conducted.The test which uses a null statement and an alternative statementwill help one understand the foundations of previously held decisionsand ultimately inform your subsequent verdict objectively.

Collegeadmissions counselors are charged with a myriad of duties. Theseduties can be better discharged when employing hypothesis testing.Some of the areas that an admissions counselor should use hypothesistesting include, but are not limited to granting or denyingadmissions, assisting to apportion scholarships and organizingrecruitment events to promote student applications.

Ifthe admissions counselor wants to know which recruitment event yieldsmore student applications, he will frame his hypothesis test in thefollowing fashion. H0Holding a recruitment event at a joint college fair attracts a highernumber of student applications as compared to holding a recruitmentevent at a joint high school career fair. H1Holdinga recruitment event at a joint college fair attracts a smaller numberof student applications as compared to holding a recruitment event ata high school career fair.

Ifthe admissions counselor wants to establish which kind of students ifadmitted are more likely to complete a college education, he willframe his hypothesis test in the following manner. H0Students from high needs schools register a higher number of collegedrop outs as compared to students from well-served schools. H1Students from high needs schools register a lesser number of collegedrop outs as compared to students from well-served schools. Theresults of the eventual statistical analysis based on previous trendswill inform a college admissions counselor whether to reject or notreject H0[ CITATION JPV12 l 2057 ]

References

Verma, J. (2012). Data Analysis in Management with SPSS Software. New York: Springer Science &amp Business Media. Retrieved October 16, 2016, from https://books.google.co.ke/books?id=fhcQRQAWmjgC&ampdq=scholarly+articles+hypothesis+testing+for+managerial+decisions+PDF&ampsource=gbs_navlinks_s

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