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# Testing hypotheses

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Details: Piggybank has narrowed its options down to two incentive plans: A. cash back when the consumer makes an online purchase; and B. cash back when the consumer makes a purchase at a clothing store. the bank doesn't know whether consumers would shop online more than at clothing stores.

Information experts has placed you in a group to develop NULL and ALTERNATIVE HYPOTHESES to help the bank determine which option would provide the best incentive to consumers. Work this out to develop the NULL and ALTERNATIVE HYPOTHESES, by writing a brief memo to the Piggybank product developing team describing your HYPOTHESES and explain how you arrived at it.

THE OBJECTIVES

USE EFFECTIVE COMMUNICATION TECHNIQUES AND FORMULATE NULL AND ALTERNATIVES HYPOTHESES FOR APPLICATION INVOLVING A SINGLE POPULATION MEAN, PROPORTION, OR VARIANCE.

Below are some detailed layout outlines:

1.explain hypothesis testing and how it works
2.give a hypothesis that will help Piggybank make their choices then convert this hypothesis to null and alternative format.
3.explain how this test will help piggybank make their decision
4.explain possible errors that can occur with hypothesis testing
5.make the final decision for piggybank assuming that your null hypothesis is correct
6.explain the final decision and how the null hypothesis helped you to reach this decision

##### Solution Summary

The solution contains detailed explanation of the standard procedure for testing hypotheses.

##### Solution Preview

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Length: 1 page memo

Details: Piggybank has narrowed its options down to two incentive plans: A. cash back when the consumer makes an online purchase; and B. cash back when the consumer makes a purchase at a clothing store. the bank doesn't know whether consumers would shop online more than at clothing stores.

Information experts has placed you in a group to develop NULL and ALTERNATIVE HYPOTHESES to help the bank determine which option would provide the best incentive to consumers. Work this out to develop the NULL and ALTERNATIVE HYPOTHESES, by writing a brief memo to the Piggybank product developing team describing your HYPOTHESES and explain how you ...

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###### Education
• BSc , Wuhan Univ. China
• MA, Shandong Univ.
###### Recent Feedback
• "Your solution, looks excellent. I recognize things from previous chapters. I have seen the standard deviation formula you used to get 5.154. I do understand the Central Limit Theorem needs the sample size (n) to be greater than 30, we have 100. I do understand the sample mean(s) of the population will follow a normal distribution, and that CLT states the sample mean of population is the population (mean), we have 143.74. But when and WHY do we use the standard deviation formula where you got 5.154. WHEN & Why use standard deviation of the sample mean. I don't understand, why don't we simply use the "100" I understand that standard deviation is the square root of variance. I do understand that the variance is the square of the differences of each sample data value minus the mean. But somehow, why not use 100, why use standard deviation of sample mean? Please help explain."
• "excellent work"
• "Thank you so much for all of your help!!! I will be posting another assignment. Please let me know (once posted), if the credits I'm offering is enough or you ! Thanks again!"
• "Thank you"
• "Thank you very much for your valuable time and assistance!"

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