Purchase Solution

5-Step Hypothesis Two-Tailed Z-Test

Not what you're looking for?

Ask Custom Question

Using the Autoplex Data Set (See excel spreadsheet attached) determine the Null Hypothesis, Alternative Hypothesis and the Research Question.

1. Null Hypothesis: "There is no difference between the mean price of automobiles bought by younger and older consumers."
2. Alternative Hypothesis: "There is a difference between the mean price of automobiles bought by younger consumers and older consumers."

3. Research Question: "Is there a difference in the mean price of autos bought by younger consumers and older consumers?"

4. Resolve the 5 steps below
1. State the Null and Alternate hypothesis
2. Select the level of significance - the alpha value
3. Choose the test statistic to use
4. Determine the decision rule - the critical value of the test statistic
5. Use the sample data to compute the test statistic based on the sample, and Determine whether to reject the null or not

5. FYI: For the purposes of the question, 'younger' is consumers age 40 and younger, while 'older' is consumers older than 40. (the separation being 'middle age')
So there are basically 2 samples - Consumers who are 40 and younger, and consumers who are older than 40.

Attachments
Purchase this Solution
Solution Summary

The solution provides step-by-step method of performing a two-tailed hypothesis z-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 in details.

Solution provided by:
Anwesha Ghosh, MSc
Education
  • MSc, Osmania University
  • MSc, Indian Institute of Technology - Roorkee (I.I.T.-ROORKEE)
  • BSc, Banaras Hindu University
Recent Feedback
  • "Very fast turnaround. Excellent communication! Much appreciated!"
  • "excellent"
  • "excellent"
  • "excellent work"
  • "Fantastic..great solution and very well explained!!!!"
Purchase this Solution
Free BrainMass Quizzes
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.

Terms and Definitions for Statistics

This quiz covers basic terms and definitions of statistics.

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.

View More Free Quizzes
Related BrainMass Solutions

  • Hypothesis testing problems

    What are the critical values of z for a two-tailed test (.05)? What are the critical values of z for a one-tailed test (.05)? What are the critical values of z for a two-tailed test (.01)? 3.

  • Hypothesis Testing

    Read the Z statistic from the normal distribution table: a. A one-tailed test(upper tail) at 87.7% confidence; Z= b. A two-tailed test at 98.4% confidence; Z= Please see the attachment.

  • Two Tailed Test with Critical Walues

    The solution explains how to perform a two-tailed test based on the critical values with step by step calculations.

  • Compute the Power of the Test

    σ = 20 (a) Standard deviation of the sample means = σ/√n = 20/√16 = 5 A treatment effect of 12 would be 12/5 = 2.4 standard deviations Now on a two tailed test the 0.05 significance level corresponds to a 0.025 significance level on a one tailed test

  • Hypothesis Testing: Critical Values and Decision Making Problems

    A two-tailed hypothesis test with critical values of ±2.33 and a test statistic for the sample of -2.56. 5. A one tailed hypothesis test with a critical value of 1.383 and a test statistic for the sample of 1.625. 6.

  • Hypothesis testing

    Step by step method for testing the hypothesis under 5 step approach is discussed here. Excel template for each problem is also included. This template can be used to obtain the answers of similar problems.

  • Statistics: Sample Size, One or Two-tailed Test

    One-Sample Z Test of mu= 123 vs > 123 The assumed standard deviation= 27.68 95% N 40 Mean 132.360 SE Mean 4.377 Lower Bound 125.161 z 2.14 p 0.016 a. How many people were sampled? b. Was this a one- or two-tailed test? c.

  • Two-tailed hypothesis test

    309967 Two-tailed hypothesis test Perform a two-tailed hypothesis test on the intrinsic variable AND a two-tailed hypothesis test on the extrinsic variable's data using a .05 significance level for each.

  • Testing of hypothesis

    Step by step method for testing the hypothesis under 5 step approach is discussed here. Calculation of p value, critical value and test statistic are discussed in detail.

View More Related Solutions