Reference no: EM131754230
Hypothesis Testing 1 -
Solve four equations based on a scenario related to hypothesis testing. Demonstrate your method, report your findings, and write a brief paragraph that details your recommendations for action.
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
Competency 1: Evaluate the quality and fit of data for use in business analysis.
- Determine the null hypothesis and alternative hypothesis for making decisions regarding household income.
Competency 3: Analyze business decision opportunities using basic inferential statistics.
- Compute the appropriate statistical test to determine acceptance or rejection of a null hypothesis.
- Compute the p-value to indicate acceptance or rejection of a null hypothesis regarding average household income.
Competency 5: Apply data analysis to general business management planning and decision making.
- Compile findings into a management report with details for recommended actions.
Competency 6: Communicate in a manner that is professional and consistent with expectations for members of the business professions.
- Communicate in a manner that is professional and consistent with expectations for members of the business professions.
Questions to Consider -
Assessment Instructions
Use the Hypothesis Tester - Single Sample file and data analysis software to complete the calculations for this scenario. You may also refer to the Hypothesis Tester - An Introduction media piece (linked in the Resources under Suggested Resources) to review the process for computing this equation.
Practical Application Scenario
In 2010, Playbill Magazine, a regionally based magazine, consulted Boos Allen to determine the mean annual household income of its readers. Using a list of customers provided by Playbill, Boos Allen randomly sampled 300Playbill customers. From that sample, Boos Allen is confident that the average Playbill reader's household income is $119,155, with a population sample household income standard deviation of $30,000.
Recently, two Playbill executives suggested that the mean average household income for Playbill readers has increased, and the magazine price should be raised. As new marketing manager for Playbill, you convince the chief operating officer to complete a second survey with Boos Allen to confirm that assertion. Yesterday, the new Boos Allen report appeared on your desk. From a new sample of Playbill customers, taken from a list of recent customers you e-mailed to Boos Allen, the 2012 Playbill customer profile shows a mean annual household income of $124,450, with a population standard deviation of household income unchanged at $30,000.
You realize that you have enough data to perform a one-sample hypothesis test. In order to choose the correct statistical tool to complete this assessment, consider the following questions:
- What do you know about the population being studied? (For example, do you know the standard deviation of the overall population?)
- What do you know about the population sample you chose? (For example, which sample statistical parameters do you have, such as mean, standard deviation, variance, and so on?)
Directions
Solve the following equations, based on the data from the Hypothesis Tester - Single Sample file. Demonstrate your method and display your results in table format, using Excel or another appropriate computer application.
1. Identify the null hypothesis, via both a written explanation and a math equation.
2. Determine the alternative hypothesis, via both a written explanation and a math equation.
3. Solve the equation to determine whether to accept or reject the null hypothesis.
4. Determine whether the p-value indicates acceptance or rejection of the null. Use alpha = .05.
Next, address the following in a report to the executives:
- Write a three-sentence paragraph that details your recommendations for a course of action, based on your results.
- Report the rejection or acceptance of the null, in terms of the scenario results.
- Explain why you can be statistically confident that the mean household Playbill reader's income has increased, decreased, or remained the same.
- State whether you would propose that the cost of the magazine be raised.
- Describe what would happen if alpha was .01.
Hypothesis Testing 2 -
Overview
Use hypothesis testing to confirm your conclusion about a set of data based on a given scenario, and write a 1-2 page report that explains your results, your recommended actions, and why you can be statistically confident in your conclusion.
Note: The assessments in this course build upon each other, so you are strongly encouraged to complete them in sequence.
Analysts often use managerial hypothesis testing to determine if an assumed change has actually occurred.
By successfully completing this assessment, you will demonstrate your proficiency in the following course competencies and assessment criteria:
Competency 1: Evaluate the quality and fit of data for use in business analysis.
- Determine the null hypothesis and alternative hypothesis for making decisions regarding average customer spending.
Competency 3: Analyze business decision opportunities using basic inferential statistics.
- Compute the appropriate statistical test to determine acceptance or rejection of a null hypothesis.
- Compute the p-value to indicate acceptance or rejection of a null hypothesis regarding average customer spending.
Competency 5: Apply data analysis to general business management planning and decision making.
- Compile findings into a management report with details for recommended actions.
Competency 6: Communicate in a manner that is professional and consistent with expectations for members of the business professions.
- Communicate in a manner that is professional and consistent with expectations for members of the business professions.
Often, a manager is faced with determining what difference there is, if any, in the value of some attribute between two groups. For example, how do men and women differ in the amount they spend on a product, such as a pair of shoes? With two-sample hypothesis testing, means from two different samples are compared to each other to determine if a difference is likely to exist in the populations from which the two samples came. It is important to practice techniques used to evaluate these types of practical managerial questions.
Questions to Consider
To deepen your understanding, you are encouraged to consider the question below and discuss it with a fellow learner, a work associate, an interested friend, or a member of the business community.
As the manager of Big Time Burgers you believe that customers that purchase chocolate milkshakes also purchase French fries. If this is true, you could have milkshake "discount days" where you reduce the price of the chocolate milkshake to generate additional sales in French fries; an item that has a significantly higher profit margin.
- How could you use hypothesis testing to confirm your assumption that customers that buy milkshakes also buy French fries?
Resources - Required Resources
The following resource contains the data needed to complete the assessment.
Mall of Elbonia Interview Results
Assessment Instructions
Use the Mall of Elbonia Interview Results file, linked in the Resources under the Required Resources heading, and data analysis software to complete the scenario for this assessment.
You may also use the Hypothesis Tester - Single Sample file to test your hypothesis; refer to the Hypothesis Tester - An Introduction media piece (linked in the Resources) to review the process for computing this equation.
Practical Application Scenario
In this scenario, you have just been hired away from your Macy's linens department buyer position by the Mall of Elbonia (MoE), as the new food court manager. Why? Rumor had it you have just earned your MBA.
One week ago, the MoE conducted convenience interviews with customers in the mall's food court. One hundred interviews were gathered. The results are summarized in the Mall of Elbonia Interview Results file. In this file, you will find the customers listed in rows, with columns containing data on:
- The customer's gender. (If you need this data for your computations in this assessment, use the coding convention: 0 for female, 1 for male.)
- How much time the customer spent in the mall.
- How much money he or she spent on food.
- The customer's rating of the mall's friendliness and attractiveness.
After you have applied the descriptive data measures, you find the mean to be particularly telling. You believe that you can happily tell the food court owners that the average amount mall customers spend on food during a visit has increased. You realize this is a one-sample test of hypothesis situation. A 2011 study previously found that customers spent an average of $18.75 per visit.
Directions
Use the data in the Mall of Elbonia Interview Results file and the process outlined below to confirm that the average amount mall customers spend on food during a visit to your mall has increased. Use an alpha of .05.
1. Determine the null hypothesis via the appropriate math equation, and write a brief explanation.
2. Determine the alternative hypothesis via the appropriate math equation, and write a brief explanation.
3. Solve the equation to determine whether to accept or reject the null hypothesis.
4. Determine whether the p-value indicates acceptance or rejection of the null. Use alpha = .05.
Next, address the following:
Report the rejection or acceptance of the null, in terms of the scenario results.
Write a three-sentence paragraph that details:
- Why you can be statistically confident that the average amount a food court's customer spends has increased, decreased, or remained the same.
- What would happen if alpha was .01 or .10.
Recommend actions to the food court owners based on your findings.
Attachment:- Assignment Files.rar