Data Analysis Assignment Essay

2408 Words Jun 21st, 2013 10 Pages
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

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