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# Hypothesis testing and correlation analysis.

The CEO has asked you for a report, based on his desire to have a 95% level of confidence, whether the target market will have a product satisfaction score of at least 4.5. A sample of 20 adults from the target market had an average score of 4.7, with a standard deviation of 0.25. Using a t-test, and assuming a fairly normal distribution, do the following:

1.State the null and alternative hypothesis.
2.Is this a 1- or 2-tailed test, and why?
3.Calculate the t-statistic (show your work).
4.Based on a 95% confidence level, is the null hypothesis accepted or rejected? Why?
5.Based on question 3, draw a conclusion about the likely customer satisfaction score of the new product line in the entire target market. State it succinctly in 1 or 2 sentences at most.
The CEO also asked you to describe another statistical tool that he has heard about, which is called coefficient of correlation, and to add it to your report. Do the following:

1.In your own words, describe what this concept is and why it could be important for analyzing data about product satisfaction scores.
2.For this data, attached
3.Calculate the coefficient of correlation
4.Reach some conclusion about how the sample population of the adults' income is related to their reported product satisfaction score.
5.Create a graph showing the relationship between these two variables, using income as the independent variable or Y-axis.

#### Solution Summary

Step by step method for computing test statistic for t test and correlation is discussed in the answer.Interactive excel sheet is included. The user can edit the inputs and obtain the complete results for a new set of data.

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