Hypothesis Testing And Confidence
Your manager has speculated the following:
a. the average (mean) annual income was greater than $45,000,b. the of customers who live in a suburban area is less than 45%,c. the average (mean) number of years lived in the current home is greater than 8 years,d. the average (mean) credit balance for rural customers is less than $3200.1. Using the sample data, perform the hypothesis test for each of the above situations in order to see if there is evidence to support your managers belief in each case a.-d. In each case use the Seven Elements of a Test of Hypothesis, in Section 6.2 of your text book with = .05, and explain your conclusion in simple terms. Also be sure to compute the p-value and interpret.2. Follow this up with 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.4. All are in effect, including the plagiarism policy.5. Project Part B report is due by the end of Week 6.6. Project Part B is . See grading rubric below.Submission: The report from part 3 all of the relevant work done in the hypothesis testing (including Minitab) in 1., and the confidence intervals (Minitab) in 2 as an appendix.Format for report:A. Summary Report (about 1 paragraph on each of the speculations a.-d.)B. 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, and including all Minitab output
Project Part B: Grading Rubric
Category Points % DescriptionAddressing each speculation – 20 pts. each 80 80 hypothesis test, interpretation, confidence interval and interpretationSummary report 20 20 1 paragraph on each of the speculationsTotal 100 100 A quality paper will meet or exceed all of the above requirements.