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    5 Step Hypothesis Test

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    The following data represents the running time of films produced by 2 motion picture companies. Assume these are independent samples

    Company Time (in minutes)
    Company 1 102 86 98 109 92
    Company 2 81 165 97 134 92 87 114

    Test the null hypothesis that the average running time of the films produced by company 2 exceeds the average running time of films produced by company 1 by an amount of 10 minutes. Test against the null hypothesis of a one sided alternative that the difference is more than 10 minutes. Use a .1 level of significance (alpha).

    a) Perform the Hypothesis test at alpha = 0.10
    b) Determine the confidence interval for the difference between the means at 90% CI

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    Solution Summary

    The solution provides step-by-step method of performing a 5-step hypothesis test. All the steps of hypothesis testing (formulation of null and alternate hypotheses, selection of significance level, choosing the appropriate test-statistic, decision rule, calculation of test-statistic and conclusion) have been explained and the statistical analysis has been shown in details. T