Amanda Mueller
MBA6018 – Data Analysis
Unit 3 Activity 1
January 23, 2013
Practical Application Scenario 1
In 2010, Playbill Magazine contracted Boos Allen to conduct a survey aimed at determining the average annual household income of Playbill readers. 300 readers were randomly pulled and sampled from the list of customers provided by Playbill Magazine. From that sampling effort, Boos Allen was confident that the population average household income is $119,155 and that the population sample household income standard deviation is $30,000.
Two Playbill executives recently hypothesized that the average annual household income of its readership has increased and so believe that the magazine price should also increase. From a
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Using the table provided on page 242 of the text, one can determine that the p-value is equal to 1 - 0.99886 or 0.00114.
Step 5: Reject H0 if the p-value is less than α. Interpret the statistical results
The p-value of 0.00114 is less than the α value of 0.05. Therefore, H0 would be rejected at the level of significance 0.05 and the magazine price could be raised.
Inputs -- | | Hypothesized Population Mean: | 119155 | Population Standard Deviation (sigma): | 30000 | Sample size (n): | 300 | Sample Mean (X-bar) | 124450 | | | Intermediate Calculations -- | | Standard Error of the Estimate: | 1732.0508 | Test Statistic (z): | 3.0570697 | | | Results -- | | | | One tailed, H0: Mu =>119155, p= | 0.9989 | | | One tailed, H0: Mu <=119155, p= | 0.0011 | | | Two-tailed, H0: Mu = 119155, p = | 0.0022 |
| For the Alpha level given, H0 should be | | Alpha: | 0.01 | 0.05 | 0.1 | | not rejected | not rejected | not rejected | | | | | | Rejected | Rejected | Rejected | | | | | | Rejected | Rejected | Rejected |
One can be statistically confident in the conclusion to reject the null hypothesis H0 by performing calculations to derive the confidence intervals. Using the Excel function NORMSINV and inputting the necessary variables (see highlighted figures below), one can determine both the upper and lower
From the above output, we can see that the p-value is 0.000186, which is smaller than 0.05 (if we select a 0.05 significance level).
All the p-values are greater than 0.05, therefore there is a statistical difference between each transect.
15 In testing the hypotheses: H0 β1 ’ 0: vs. H1: β 1 ≠ 0 , the following statistics are available: n = 10, b0 = 1.8, b1 = 2.45, and Sb1= 1.20. The value of the test statistic is:
We reject Ho if χ2 > χα2. At α=0.05, with 4 degrees of freedom, the critical value becomes χα2=9.488 (table E.4)
(21) You took a sample of size 21 from a normal distribution with a known standard deviation, . In order to find a 90% confidence interval for the mean, You need to find.
Because the p-value of .035 is less than the significance level of .05, I will reject the null hypothesis at 5% level.
For d2, t-statistic= 1.8774, t-statistic < t-critical. Thus we do not reject Ho and d2 is not significant.
Testing allows the p-value that represents the probability showing that results are unlikely to occur by chance. A p-value of 5% or lower is statistically significant. The p value helps in minimizing Type I or Type II errors in the dataset that can often occur when the p value is more than the significance level. The p value can help in stopping the positive and negative correlation between the dataset to reject the null hypothesis and to determine if there is statistical significance in the hypothesis. Understanding the p value is very important in helping researchers to determine the significance of the effect of their experiment and variables for other researchers
The null hypothesis is rejected since the p-value is below the significance level of 0.05.
Note: the program we used on this worksheet said the results were not significant, but then in statistical notion it had “p < 0.05”. That is confusing because I believe it should be “p >
P-value represents a decimal between 1.0 to below .01. Unfortunately, the level of commonly accepted p-value is 0.05. The level of frequency of P>0.05 means that there is one in twenty chance that the whole study is just accidental. In other words, that there is one in twenty chance that a result may be positive in spite of having no actual relationship. This value is an estimate of the probability that the result has occurred by statistical accident. Thus, a small value of P represents a high level of statistical significance and vice
To test the null hypothesis, if the P-Value of the test is less than 0.05 I will reject the null hypothesis.
With a P-value of 0.00, we have a strong level of significance. No additional information is needed to ensure that the data given is accurate.
The second step is defining the significance level, determining the degrees of freedom and finding the critical value. The a-level shows that for a result to be statistically significant, it cannot occur more than the a-level percentage of time by chance. The critical value can be obtained by using the t-test table. The degrees of freedom is
Since 3.27 the t statistic is in the rejection area to the right of =1.701, the level of