Activity:

1- Using the peer's numbers below, run a hypothesis test using the following scenario:

- A town official claims that the average vehicle in their area Does Not sell for 80^thpercentile of your data set.

a) - Conduct a four-step hypothesis test including a sentence at the end justifying the support or lack of support for the scenario's claim.

b) - Why you made that choice?

Note: Use alpha = .05 to test your claim.

Peer's results: Due to the sample size (10) being less than 30, I will be using the T-test to determine if the claim that the average vehicle in the area sells for more than the 40th percentile ($61,014) of my data set is supported. For this hypothesis, a right-sided test is utilized due to using more thanin the claim.

After utilizing the data from my running spreadsheet, the test statistic (TS) came out to 0.3177, which set my P value at 0.3790. The P value (0.3790) is greater than Alpha (0.05) (0.3790>0.05), therefore, we failed to reject the null hypothesis. There is not enough evidence to support the alternative hypothesis.

Data:

40th Percentile: $61,014

Mean: $62,415

Standard Error: 4,410

Alpha: 0.05

TS: 0.3177

P: 0.3790

111 VIX fx =T.DIST.RT(19,10-1) B C D E F G H K Car Price: Car Price: Week 6 $ 43,255 40th Percentile (population mean) 61014 44,313 Mean 62415.1 Mean 62415 52,888 Standard Error 4409.820648 Standard Error 4410 53,640 Median 66557.5 Alpha 0.05 S 65,930 Mode #N/A SD 13945.08 67,185 Standard Deviation 13945.07732 67,990 Sample Variance 194465181.4 Right Sided Test 69,365 Kurtosis 0.067241011 TS= 62415-61014 = 0.317687 10 70,595 Skewness 0.280150782 4410 88,990 Range 45735 P-Value 0.378985 12 Mean 62,415 Minimum 43255 13 Median 66,558 Maximum 38990 0.3790 > 0.05 14 SD 13945.07732 Sum 624151 P-Value is greater than Alpha, therefore, we failed to reject the null hypothesis. There is 15 Count 10 not enough evidence to support the alternative hypothesis