Part 1: Hypothesis Testing (25 points)

Step 1: Suppose you are asked to conduct a hypothesis test on the population mean. What type of hypothesis test would you use? What assumptions do you need to make about the process when you are conducting a hypothesis test on the population mean in order for your results to be valid?

This needs to be at least one (1) paragraph in length. Note a paragraph contains at least three complete sentences. Watch your spelling and grammar.

Step 2: Go to the Hypothesis Testing worksheet in the Project_Data Excel file. Press the button:

Press the Button to Generate the Data. This will populate column A with data. Please note you must press this button. Do not copy data from another place. I will be checking to see if you indeed pressed the button to generate your own unique data for the project!

Step 3: Once the button is pressed and the data generated, you will be asked to conduct a hypothesis test. Note, this is sample data that has been generated. Assume the population standard deviation is unknown and the data is from a normally distributed population.

Conduct a two tailed hypothesis test for the population mean. You will need to provide the following:

1. 1)Pick a hypothesized value (what you believe the population mean may be. Don't use the sample mean for the hypothesized value). State your null and alternative hypotheses. Use a two tailed test.
2. 2)Determine the test statistic
3. 3)Determine the p-value
4. 4)Determine the critical values for the hypothesis test.
5. 5)Clearly explain whether one should reject or not reject the null hypothesis at a 5%
6. level of significance. Explain your reasoning.

Possible Points:

• Assumptions discussion: 6 possible points
• Null and alternative hypotheses: 4 possible points
• Test statistic: 3 possible points
• p-value: 3 possible points
• Critical values 3 possible points
• Conclusions: 6 possible points

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Part 2: Simple Linear Regression (30 points)

Scenario: You are curious to see if there is a possible relationship between the number of promotions and total sales.

Step 1: Go to the Regression worksheet in the Project_Data Excel file. Press the button:

Press the Button to Generate the Data. This will populate columns E and F with data. Please note you must press this button. Do not copy data from another place. I will be checking to see if you indeed pressed the button to generate your own unique data for the project!

Step 2: Once the button is pressed and the data generated, you will be asked to provide the following:

• Create scatter diagram. Be sure to include axis titles on your graph and a trend line with the equation.
• Run a linear regression using Excel's Data Analysis regression tool. Construct the linear regression equation and determine the predicted total sales value if the number of promotions is 6. Is there a significant relationship? Clearly explain your reasoning using the regression results.
• Possible points:
• Scatter diagram: 6 possible points
• Regression:
• Regression line: 3 possible points
• Predicted value: 3 possible points
• Significance discussion: 6 possible points
• Excel Data Analysis Regression: 12 possible points