Explore BrainMass

Explore BrainMass

    State the null hypothesis & explain the type of test to run

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Please state the null hypothesis and explain the type of test to run.

    1) You are interested in understanding whether the average Lifetime Value (the net present value of all the transaction expected from a customer) for the customers in the Florida is significantly different from those in California. You suspect that the California LTV (Lifetime value) would be higher than in Florida. In order to test this hypothesis, you pick 10 customers each in the California and Florida and record their LTV (in dollars). State the appropriate hypothesis.
    Use α =0.05

    © BrainMass Inc. brainmass.com June 4, 2020, 12:52 am ad1c9bdddf

    Solution Preview

    The hypotheses are:

    Ho: California LTV (Lifetime value) is the same as that in Florida

    Ha: ...

    Solution Summary

    Appropriate Hypothesis stated and type of test to run indicated in the solution.