# mth hypothesis testing and confidence intervals

1. Using the sample data, perform the hypothesis test for each of the below situations in order to see if there is evidence to support the managerâ€™s belief in each case a.-d.  In each case use the Seven Elements of a Test of Hypothesis, using the Î± provided explain the conclusion in simple terms.  Also be sure to compute the p-value and interpret.
2. Follow this up with computing confidence intervals for each of the variables described in a.-d., and again interpreting these intervals.
3. Write a report to your manager about the results, distilling down the results in a way that would be understandable to someone who does not know statistics.  Clear explanations and interpretations are critical.

I’VE INCLUDED PART A THAT HAS ALREADY BEEN DONE AS WELL AS THE DATA WHICH IS ALSO ATTACHED FOR REFERENCE.

Data_AJ_DAVIS.xla

Format for report:

1. Summary Report (about 1 paragraph on each of the speculations a.-d.)
2. Appendix with all of the steps in hypothesis testing (the format of the Seven Elements of a Test of Hypothesis, in Section 6.2 of your text book) for each speculation a.-d. as well as the confidence intervals, the p-values, and including all Minitab output

a. The average (mean) annual income was greater than \$45,000.

H0:Î¼= 45000

Ha:Î¼>

Î± = .   z >

Descriptive Statistics: Income (\$1000)

One-Sample Z

b. The true population proportion of customers who live in a suburban area is less than 45%.

H0:

Ha:

Î± =    z <

Descriptive Statistics:

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

H0:Î¼

Ha:Î¼

Î± = .  z >

Descriptive Statistics:

d. The average (mean) credit balance for rural customers is less than \$3,200.

H0:Î¼=

Ha:Î¼

Î± =   z <

Descriptive Statistics: