Purchase Solution

5 Step Hypothesis Test

Not what you're looking for?

Ask Custom Question

Test the hypothesis that the population average income is greater than $55,000 using 5-step hypothesis test.

Sample Mean = $55,450, Sample Standard Deviation = $2,500
Sample Size =121, Significance Level, alpha = 5%

State your conclusion in statistical terms and in conversational English. Compute the p-value What effect might a different alpha value have?
Discuss the type I and type II errors and what they mean in this situation.

Purchase this Solution

Solution Summary

The solution provides step-by-step method of performing a 5-step hypothesis test for the given data. 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. The calculations have also been shown in EXCEL for better understanding.

Solution Preview

5 Step Hypothesis Test
Step1: State the Null and Alternate Hypothesis:
Null Hypothesis: The population average income in the area is smaller than or equal to $55,000.

Alternate Hypothesis: The population average income in the area is greater than $55,000.

Step2: Analysis Plan:
The data has been measured in ratio scale and the sample size is large. Hence, the distribution can be assumed to follow a normal distribution. ...

Purchase this Solution

Free BrainMass Quizzes
Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

Know Your Statistical Concepts

Each question is a choice-summary multiple choice question that presents you with a statistical concept and then 4 numbered statements. You must decide which (if any) of the numbered statements is/are true as they relate to the statistical concept.

Measures of Central Tendency

This quiz evaluates the students understanding of the measures of central tendency seen in statistics. This quiz is specifically designed to incorporate the measures of central tendency as they relate to psychological research.

Measures of Central Tendency

Tests knowledge of the three main measures of central tendency, including some simple calculation questions.