The speaker discusses a market research scenario involving a sample of individuals rating the purchase potential of a specific product before and after viewing a TV commercial for the product. The purchase potential ratings are on a scale of 0 to 10, with higher values indicating a higher purchase potential.
The null hypothesis (H0) states that the mean rating after the commercial would be less than or equal to the mean rating before the commercial. The alternative hypothesis (Ha) states that the mean rating after the commercial would be greater than the mean rating before the commercial.
The speaker uses a significance level of 0.05 and conducts a paired t-test to determine whether the commercial influenced the purchase potential of the product. The data is summarized, visualized using a histogram, and analyzed using the t-test.
The p-value obtained from the t-test is greater than 0.05, leading to the conclusion that the commercial did not significantly increase the mean purchase potential of the product.
1. A market research firm used a sample of individuals to rate the purchase potential of a particular product before and after seeing a TV commercial about the product [Source: Document(page_content="00:00:00.42: so the example says a market research\n00:00:02.88: firm used a sample of individuals to\n00:00:05.28: rate the purchase potential of a\n00:00:07.74: particular product before and after the\n00:00:10.56: individual saw a new TV commercial about\n00:00:13.14: the product")].
2. The purchase potential ratings were based on a 0 to 10 scale with higher values indicating a higher purchase potential [Source: Document(page_content="00:00:46.50: based on a 0 to 10 scale with higher\n00:00:49.62: values indicating a higher purchase\n00:00:51.36: potential")].
3. The null hypothesis was that the mean rating after would be less than or equal to the mean rating before [Source: Document(page_content="00:00:56.34: the null hypothesis which is\n00:00:58.02: stated that the mean rating\n00:01:01.14: after\n00:01:02.34: would be less than or equal to the mean\n00:01:05.22: rating before")].
4. The data used for the hypothesis test included eight observations with three variables, representing eight individuals in total [Source: Document(page_content="00:02:51.36: you can see we have eight observations\n00:02:53.04: with three variables\n00:02:54.72: and when I click on it you can see it so\n00:02:56.64: these are each of the individuals that\n00:02:59.16: make up our sample")].
5. The mean rating after watching the commercial was 6, while the mean rating before watching the commercial was 5.4 [Source: Document(page_content="00:03:15.66: we have a rating of six\n00:03:17.70: right and remember the question says\n00:03:20.96: with higher values indicating a higher\n00:03:24.36: purchase potential so on a scale of six\n00:03:27.20: right that means\n00:03:30.18: it's it's more likely right that this\n00:03:34.92: individuals will will purchase\n00:03:38.10: the product after watching the TV\n00:03:40.26: commercial and then when you look at\n00:03:42.48: before\n00:03:44.28: you have a mean of should I say 5.4")].
6. The data was summarized using a histogram to visualize the distribution of the data [Source: Document(page_content="00:05:25.38: the data using a histogram to basically\n00:05:28.98: see what kind of distribution does the\n00:05:30.84: does the data follow")].
7. The test statistics were computed using a paired t-test, as the population standard deviation was unknown [Source: Document(page_content="00:07:20.10: the test statistics\n00:07:22.62: but before we do that I have some some\n00:07:25.26: points I want to just put out here right\n00:07:28.50: I think I've mentioned it in the\n00:07:30.18: here\n00:07:31.02: so we're using the t-test function\n00:07:3