Project Part B: Hypothesis Testing and Confidence Intervals

Project Part B: Hypothesis Testing and Confidence Intervals

1.Using the sample data, perform the hypothesis test for each of the above situations in order to see if there is evidence to support your manager’s belief in each case a.-d. In each case use the Seven Elements of a Test of Hypothesis, in Section 6.2 of your text book with ? = .05, and explain your conclusion in simple terms. Also be sure to compute the p-value and interpret.

2.Follow this up with computing 95% confidence intervals for each of the variables described in a.-d., and again interpreting these intervals. 

• The average (mean) annual income was greater than $45,000

•the true population proportion of customers who live in an urban area is less than 45%,

•the average (mean) number of years lived in the current home is greater than 8 years

•the average (mean) credit balance for suburban customers is less than $3,200