confidence intervals and hypothesis testing 2
Assume once again that you are a consultant who works for the Diligent Consulting Group. You are continuing to work on the analysis of the customer database from Module 1.
SLP Assignment Expectations
Complete the following tasks in the Module 2 SLP assignment template:
- Generate a 95% confidence interval for the following two variables by hand: “Annual Amount Spent on Organic Food” and “Age.”
- Generate a 95% confidence interval for the following two variables using the Excel formula =CONFIDENCE.T(): Annual Income and Number of People in the Household.
- Interpret the confidence intervals for each of the variables.
- The client insists the average income of his organic food customers is $150,000. Conduct a hypothesis test at the 0.10 level to test his statement. What is your decision?
Required Reading
The primary resource for this module is Introductory Business Statistics, by Alexander, Illowsky, and Dean.
Alexander, H., Illowsky, B., & Dean, S. (2017). Introductory Business Statistics. Openstax. Retrieved from https://openstax.org/details/books/introductory-business-statistics
For Module 2, you should read through the following material in this textbook. There is quite a bit of detailed material in this module, so please start early.
Chapter 7: The Central Limit Theorem
Sections 7.1 and 7.2 only
This chapter explains sampling distributions and the Central Limit Theorem.
Chapter 8: Confidence Intervals
Sections 8.1, 8.2, and 8.3 only
This chapter explains how to calculate confidence intervals for population means and proportions.
Chapter 9: Hypothesis Testing with One Sample
This chapter introduces hypothesis testing, including the general steps and how to conduct one-sample tests.
Chapter 10: Hypothesis Testing with Two Samples
Sections 10.1, 10.3, and 10.6 only
This chapter expands on Chapter 9 material and focuses on two-sample tests. There are five tests introduced in this chapter, but we will only focus on three of them.
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