# Two Sample Hypothesis Testing

Need a comparison between unemployment and import export data for the four different countries (China, Chile, Canada, and United States).

Using the dataset attached (AISE CIA Global Demographics) and reviewing the tabs in the excel document.

Use the five step hypothesis testing procedure.

I am writing a paper that states "for the null hypothesis we are saying that unemployment does impact export/import and for the alternate we are trying to prove that unemployment does not affect the import/export for each countries."

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#### Solution Preview

Step 1

State the null hypothesis and alternate hypotheses

The data for imports and exports are in separate variables, so we're going to have to do two different tests (one for imports and one for exports). In your posting, you said that you were testing whether or not unemployment affects import/export. We can really only test to see whether or not they are related (i.e. whether or not the variables are correlated). If they are correlated, then one variable might affect the other. If they are not correlated, then we can say that they are independent of one another.

Exports:

Null: The exports of a country are independent of its unemployment rate (the correlation coefficient, r, equals 0).

Alternative: The exports of a country are not independent of its unemployment rate (the correlation coefficient, r, is different from 0).

Imports:

Null: The imports of a country are independent of its unemployment rate (the ...

#### Solution Summary

The solution uses regression/correlation analysis to answer the question.