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Hypothesis: Define your hypothesis. Define the population parameter. Write null (Ho) and alternative (Ha) hypotheses. Note: For means, define a hypothesis that is less than the population parameter. Specify your significance level. Data analysis: Summarize your sample data using appropriate graphical displays and summary statistics and confirm assumptions have not been violated to complete this hypothesis test. Provide at least one histogram of your sample data. In a table, provide summary statistics including sample size, mean, median, and standard deviation. Note: For quartiles 1 and 3, use the quartile function in Excel: =QUARTILE([data range], [quartile number]) Summarize your sample data, describing the center, spread, and shape in comparison to the national information (under Supporting Materials, see the National Summary Statistics and Graphs House Listing Price by Region PDF). Note: For shape, think about the distribution: skewed or symmetric. Check the conditions. Determine if the normal condition has been met. Determine if there are any other conditions that you should check and whether they have been met. Note: Think about the central limit theorem and sampling methods. Hypothesis test calculations: Complete hypothesis test calculations. Calculate the hypothesis statistics. Determine the appropriate test statistic (t). Note: This calculation is (mean – target)/standard error. In this case, the mean is your regional mean, and the target is the national mean. Calculate the probability (p value). Note: This calculation is done with the T.DIST function in Excel: =T.DIST([test statistic], [degree of freedom], True) The degree of freedom is calculated by subtracting 1 from your sample size. Interpretation: Interpret your hypothesis test results using the p value method to reject or not reject the null hypothesis. Relate the p value and significance level. Make the correct decision (reject or fail to reject). Provide a conclusion in the context of your hypothesis. 2-Tail Test Hypotheses: Define your hypothesis. Define the population parameter. Write null and alternative hypotheses. Note: For means, define a hypothesis that is not equal to the population parameter. State your significance level. Data analysis: Summarize your sample data using appropriate graphical displays and summary statistics and confirm assumptions have not been violated to complete this hypothesis test. Provide at least one histogram of your sample data. In a table, provide summary statistics including sample size, mean, median, and standard deviation. Note: For quartiles 1 and 3, use the quartile function in Excel: =QUARTILE([data range], [quartile number]) Summarize your sample data, describing the center, spread, and shape in comparison to the national information. Note: For shape, think about the distribution: skewed or symmetric. Check the assumptions. Determine if the normal condition has been met. Determine if there are any other conditions that should be checked on and whether they have been met. Note: Think about the central limit theorem and sampling methods. Hypothesis test calculations: Complete hypothesis test calculations. Calculate the hypothesis statistics. Determine the appropriate test statistic (t). Note: This calculation is (mean – target)/standard error. In this case, the mean is your regional mean, and the target is the national mean.] Determine the probability (p value). Note: This calculation is done with the TDIST.2T function in Excel: =T.DIST.2T([test statistic], [degree of freedom]) The degree of freedom is calculated by subtracting 1 from your sample size. Interpretation: Interpret your hypothesis test results using the p value method to reject or not reject the null hypothesis. Compare the p value and significance level. Make the correct decision (reject or fail to reject). Provide a conclusion in the context of your hypothesis. Comparison of the test results: Revisit Question 3 from the Scenario section: For your region, what is the range of values for the 95% confidence interval of square footage for homes? Calculate and report the 95% confidence interval. Show or describe your method of calculation. Final Conclusions Summarize your findings: In one paragraph, summarize your findings in clear and concise plain language. Discuss: Discuss whether you were surprised by the findings. Why or why not?
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