Part B Course Project Math 533 Essay

1868 WordsAug 9, 20138 Pages
Course Project Part B a. the average (mean) annual income was less than \$50,000 Null and Alternative Hypothesis H0: mu= 50 (in thousands) Ha: mu&lt;50 (in thousands) Level of Significance Level of Significance = .05 Test Statistic, Critical Value, and Decision Rule Since alpha = .05, z&lt;-1.645, which is lower tailed Rejection region is, z&lt;-1.645 Calculate test statistic, x-bar=43.74 and s=14.64 Z=(43.74-50)/2.070=-3.024 2.070 is calculated by: s/sq-root of n Decision Rule: The calculated test statistic of -3.024 does fall in the rejection region of z&lt;-1.645, therefore I would reject the null and say there is sufficient evidence to indicate mu&lt;50. Interpretation of Results and Conclusion…show more content…
the average (mean) credit balance for suburban customers is more than \$4300. 15 people of 50 surveyed live in a suburban community, so I will be conducting a t-test because 15&lt;30. Null and Alternative Hypothesis H0: mu=\$4,300 Ha: mu&gt;\$4,300 Level of Significance Level of Significance= .05 Test Statistic, Critical Value, and Decision Rule Since alpha= .05, t&gt;1.761, which is upper tailed. Rejection region is t&gt;1.761 Calculate the test statistic, x-bar=4675 and s=742 T=(4675-4300)/742sqrt15=1.957 Decision Rule: 1.957 is greater than 1.761, which means it does fall in the rejection region, so I would reject H0. Because I am rejecting H0, this means that there is sufficient evidence to conclude that the average credit balance for the suburban customers is greater than \$4300 Interpretation of Results and Conclusion p-value=.035 .035&lt;.05 Because the p-value of .035 is less than the significance level of .05, I will reject the null hypothesis at 5% level. 95%=(4264, 5086)- I am 95% confident that the average credit balance for suburban customers falls between \$4264 and \$5,086. Minitab Output One-Sample T Test of mu = 4300 vs &gt; 4300 95% Lower N Mean StDev SE Mean Bound T P 15 4675 742 192 4338 1.96 0.035 Final Report of Results Before parts a-d are broken down, provided below are a the