Hypothesis Testing
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HypothesisTesting.xlsxData
| Trident University | ||||
| BUS520: Business Analytics and Decision Making | ||||
| Module 2: SLP Template | ||||
| FILL IN ALL CELLS THAT ARE HIGHLIGHTED IN YELLOW | ||||
| Please remember to save this file with your last name in the file name. For example: BUS520 Module 2 SLP Template, Doe.doc | ||||
| Name: | ||||
| Annual Amount Spent on Organic Food | Age | Annual Income | Number of People in Household | Gender (0 = Male; 1 = Female) |
| 7348 | 77 | 109688 | 3 | 1 |
| 11598 | 47 | 109981 | 5 | 1 |
| 9224 | 23 | 112139 | 4 | 1 |
| 12991 | 38 | 113420 | 5 | 1 |
| 16556 | 58 | 114101 | 5 | 0 |
| 11515 | 44 | 115100 | 5 | 0 |
| 10469 | 34 | 116330 | 5 | 0 |
| 17933 | 75 | 116339 | 6 | 0 |
| 18173 | 32 | 117907 | 7 | 0 |
| 12305 | 39 | 119071 | 5 | 1 |
| 9080 | 65 | 58603 | 5 | 1 |
| 9113 | 48 | 58623 | 4 | 1 |
| 6185 | 48 | 61579 | 2 | 1 |
| 6470 | 49 | 62180 | 2 | 0 |
| 6000 | 57 | 62202 | 5 | 1 |
| 6760 | 71 | 68041 | 2 | 0 |
| 8579 | 47 | 68407 | 4 | 1 |
| 7393 | 47 | 69618 | 3 | 1 |
| 8161 | 28 | 73079 | 4 | 0 |
| 10800 | 63 | 75900 | 5 | 1 |
| 6160 | 24 | 77129 | 3 | 1 |
| 10800 | 66 | 79618 | 6 | 0 |
| 8543 | 24 | 81131 | 4 | 0 |
| 17666 | 38 | 86246 | 6 | 1 |
| 12644 | 54 | 89167 | 5 | 1 |
| 14308 | 28 | 89576 | 5 | 1 |
| 9737 | 58 | 92296 | 4 | 0 |
| 13301 | 27 | 93614 | 5 | 1 |
| 18106 | 48 | 93954 | 6 | 1 |
| 11468 | 26 | 95937 | 5 | 1 |
| 9547 | 52 | 100846 | 4 | 0 |
| 7812 | 29 | 103276 | 2 | 1 |
| 15521 | 75 | 104112 | 5 | 1 |
| 7598 | 45 | 105119 | 4 | 0 |
| 7783 | 74 | 105925 | 3 | 1 |
| 17737 | 56 | 106084 | 6 | 0 |
| 7824 | 30 | 108616 | 3 | 1 |
| 6552 | 57 | 109038 | 2 | 0 |
| 11232 | 41 | 109585 | 5 | 1 |
| 6540 | 23 | 37834 | 5 | 0 |
| 4200 | 28 | 38940 | 5 | 0 |
| 7225 | 23 | 42145 | 5 | 0 |
| 5370 | 45 | 48677 | 5 | 1 |
| 4476 | 33 | 48997 | 4 | 1 |
| 2800 | 42 | 49058 | 1 | 1 |
| 7839 | 39 | 49609 | 4 | 1 |
| 3472 | 60 | 53279 | 1 | 0 |
| 8854 | 57 | 53917 | 5 | 0 |
| 8900 | 41 | 54716 | 5 | 0 |
| 12791 | 67 | 126306 | 5 | 0 |
| 12712 | 73 | 130893 | 5 | 1 |
| 13321 | 57 | 134488 | 5 | 1 |
| 8802 | 64 | 135711 | 4 | 0 |
| 14369 | 24 | 139701 | 5 | 1 |
| 7908 | 25 | 142014 | 4 | 1 |
| 17840 | 34 | 142857 | 6 | 0 |
| 15107 | 78 | 143182 | 5 | 1 |
| 12070 | 34 | 150987 | 5 | 1 |
| 6389 | 34 | 152041 | 2 | 1 |
| 6606 | 41 | 154702 | 3 | 0 |
| 6291 | 62 | 155552 | 1 | 1 |
| 7425 | 57 | 157329 | 3 | 0 |
| 11436 | 23 | 163794 | 5 | 1 |
| 7612 | 78 | 164108 | 4 | 0 |
| 7515 | 36 | 165851 | 4 | 0 |
| 13115 | 44 | 172497 | 5 | 1 |
| 11870 | 75 | 174458 | 5 | 0 |
| 8450 | 70 | 177517 | 4 | 1 |
| 16324 | 38 | 183779 | 5 | 0 |
| 9331 | 35 | 185111 | 4 | 0 |
| 9184 | 65 | 186467 | 4 | 0 |
| 16803 | 68 | 189137 | 6 | 0 |
| 10709 | 48 | 194351 | 5 | 1 |
| 14456 | 24 | 194380 | 5 | 0 |
| 16634 | 46 | 197358 | 5 | 0 |
| 12227 | 43 | 197400 | 5 | 1 |
| 13476 | 58 | 198650 | 5 | 0 |
| 14554 | 66 | 202859 | 5 | 1 |
| 9393 | 68 | 203591 | 4 | 1 |
| 14594 | 74 | 206216 | 5 | 1 |
| 6628 | 32 | 207679 | 2 | 0 |
| 11240 | 61 | 210498 | 5 | 0 |
| 13101 | 42 | 210678 | 5 | 1 |
| 14034 | 60 | 211249 | 5 | 0 |
| 17837 | 64 | 211961 | 6 | 1 |
| 7849 | 53 | 212851 | 2 | 1 |
| 10578 | 62 | 213035 | 5 | 1 |
| 11325 | 78 | 214457 | 5 | 0 |
| 7105 | 44 | 215442 | 2 | 0 |
| 16460 | 58 | 220178 | 5 | 1 |
| 8390 | 27 | 220403 | 3 | 1 |
| 14956 | 68 | 220893 | 5 | 1 |
| 10903 | 21 | 221223 | 4 | 1 |
| 12054 | 70 | 221498 | 5 | 1 |
| 11697 | 38 | 222618 | 5 | 1 |
| 12781 | 25 | 229072 | 5 | 1 |
| 17456 | 30 | 229685 | 6 | 1 |
| 12835 | 70 | 230228 | 5 | 1 |
| 13403 | 37 | 235617 | 5 | 0 |
| 15051 | 40 | 238087 | 5 | 0 |
| 14225 | 29 | 240768 | 5 | 0 |
| 11196 | 54 | 242529 | 4 | 0 |
| 11475 | 52 | 243765 | 5 | 1 |
| 5605 | 65 | 244625 | 2 | 0 |
| 9890 | 72 | 245208 | 4 | 1 |
| 13227 | 40 | 247648 | 5 | 0 |
| 11200 | 36 | 249805 | 4 | 1 |
| 9600 | 43 | 252033 | 4 | 0 |
| 15703 | 38 | 252812 | 5 | 1 |
| 6486 | 73 | 257143 | 1 | 1 |
| 9430 | 41 | 258167 | 4 | 1 |
| 7755 | 35 | 258640 | 2 | 1 |
| 8100 | 21 | 261020 | 3 | 1 |
| 14821 | 59 | 266223 | 5 | 1 |
| 10650 | 56 | 266269 | 5 | 1 |
| 12589 | 42 | 267565 | 5 | 1 |
| 11600 | 46 | 268380 | 4 | 1 |
| 13000 | 34 | 269431 | 4 | 1 |
| 17065 | 70 | 269839 | 6 | 0 |
| 16500 | 55 | 270441 | 5 | 0 |
| 8600 | 38 | 272795 | 2 | 0 |
| 11900 | 51 | 274846 | 4 | 1 |
| 16723 | 66 | 276250 | 5 | 0 |
| 16759 | 43 | 277231 | 5 | 0 |
Question 1
| FILL IN ALL CELLS THAT ARE HIGHLIGHTED IN YELLOW | |||
| QUESTION 1: Generate a 95% confidence interval for the following two variables by hand: Annual Amount Spent on Organic Food and Age. | |||
| Average Annual Amount Spent on Organic Food (𝑥 ̅) | Average Age (𝑥 ̅) | ||
| t-value from the t-table (t) | t-value from the t-table (t) | ||
| standard deviation for this variable (s) | standard deviation for this variable (s) | ||
| number of observations (n) | number of observations (n) | ||
| Margin of Error | ERROR:#DIV/0! | Margin of Error | ERROR:#DIV/0! |
| Upper Limit of Confidence Interval | ERROR:#DIV/0! | Upper Limit of Confidence Interval | ERROR:#DIV/0! |
| Lower Limit of Confidence Interval | ERROR:#DIV/0! | Lower Limit of Confidence Interval | ERROR:#DIV/0! |
Questions 2-3
| FILL IN ALL CELLS THAT ARE HIGHLIGHTED IN YELLOW | |
| QUESTION 2: Generate a 95% confidence interval for the following two variables using the Excel formula =CONFIDENCE.T(): Annual Income and Number of People in the Household. Remember, this formula will just give you the margin of error. You will still need to add it to the mean and subtract it from the mean to get the upper and lower limits of the confidence interval. | |
| margin of error from the =CONFIDENCE.T() formula | |
| Average Annual Income | |
| Upper Limit of Confidence Interval | 0 |
| Lower Limit of Confidence Interval | 0 |
| margin of error from the =CONFIDENCE.T() formula | |
| Average Number of People | |
| Upper Limit of Confidence Interval | 0 |
| Lower Limit of Confidence Interval | 0 |
| QUESTION 3a: Interpret the confidence intervals for Average Annual Income. | |
| QUESTION 3b: Interpret the confidence intervals for Average Number of People |
Question 4
| FILL IN ALL CELLS THAT ARE HIGHLIGHTED IN YELLOW | |
| QUESTION 4: The client insists the average income of his organic food customers is $150,000. Conduct a hypothesis test at the 0.10 level to test his statement. What is your decision? | |
| Step 1: State the Null and Alternate Hypotheses | |
| Null Hypothesis | |
| Alternate Hypothesis | |
| Step 2: Determine Alpha (Stated in Question) | 0.10 |
| Step 3: Determine Which Test Statistic Will Be Used | |
| Step 4: Formulate a Decision Rule | |
| Step 5: Make a Decision |
Hint: This will be a 2-tail t-test.
