John and Sons Company: Null Thesis

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To test whether the research results are statistically significant an appropriate test of statistical significance should be run. A chi-square "goodness-of-fit test is used to determine whether a set of proportions have specified numerical values" (Hypothesis testing, 2009, Quick MBA). However, in this specific instance, since it is likely that multiple batch tests for defects will be run, an ANOVA test would be more appropriate: "The primary purpose of ANOVA is to test for differences between multiple means.

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Whereas the t-test can be used to compare two means, ANOVA is needed to compare three or more means. If multiple t-tests were applied, the probability of a TYPE I error (rejecting a true null hypothesis) increases as the number of comparisons increases" (Hypothesis testing, 2009, Quick MBA). A one-way ANOVA examines whether multiple means differ. "ANOVA calculates the ratio of the variation between groups to the variation within groups" (Hypothesis testing, 2009, Quick MBA)......

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