← Back to Headlands Technologies Interview Questions

Question

Eighteen customers try two handle designs and give each a comfort score on the same scale. Each customer's result is paired: subtract the old-handle score from the new-handle score. Ten customers give a positive difference, three give a negative difference and five give exactly zero.

Before collecting the scores, the workshop decided to use a one-sided sign test for whether the new handle is preferred. Under its null hypothesis, conditional on a nonzero difference, each customer's sign is an independent fair coin; the magnitude of a score difference is not modeled. Zero differences are treated as ties and excluded, not counted as half-wins.

What is the exact p-value for more positive than negative differences, and would the workshop reject at a 5% significance level? What do the five ties do to the test?

Hint 1

Condition on the 13 customers who reported nonzero differences. Under the null, the number of positive signs is \(\operatorname{Binomial}(13,\frac12)\).

For a one-sided alternative favouring the new handle, sum the null probabilities of 10, 11, 12 or 13 positive signs.

Check your answer

Join our Newsletter and Receive the Latest Updates!

Main Links

Trade Courses Assessments Interview Prep Contact Us

Social Media

Facebook Instagram YouTube

Legal

Terms and Conditions Privacy Policy Privacy settings

Talent Acquisition

Looking to hire exceptional quant talent?
See how we can help.

© 2026 EverythingQuant. All Rights Reserved.