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5-Step Hypothesis Test: Z-Test

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Problem 1: Empire State College would like to know more about the age distribution of its online statistics students.
Do the data provide evidence that the mean age is not 30 years?

Problem 2: Pew Research says that 53% of American adults call themselves middle class.
The sample size was n=2413.
http://pewresearch.org/databank/dailynumber/?NumberID=559
How confident are you that between 51% and 55% of Americans call themselves middle class?
How likely is it that more than 55% call themselves middle class?

Problem 3: Some have suggested that a higher proportion of women than men under 35 use online education because they can combine online education with childcare.
Do the ESC online statistics students offer any insight into that question?
You must do a test of significance to answer this question.

Problem 4: Is there evidence that more than half the online statistics students are over 30?

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https://brainmass.com/statistics/nonparametric-tests/5-step-hypothesis-test-z-test-309683

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Solution Summary

The solution provides step-by-step method of performing both Z-Test for Two Samples and Z-Test for Two Proportions. 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. Calculation of Z-Score has also been shown. Some calculations have been performed in EXCEL for better understanding.

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5-Step Hypothesis Two-Tailed Z-Test

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.

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