Question: How would I make an excel sheet to correspond with these calculations?

Deliverable 4

STA 3215 CBE

Rasmussen College

Deliverable 04 Worksheet

1.Describe the 8 steps in the process for hypothesis testing. Explain the decision criteria for rejecting the null hypothesis for both the p-value method and the critical value method.

Answer and Explanation:

1.Identify the claim that is being tested.

2.Provide the symbolic form that needs to be true when the original claim is found to be false.

3.Identify what the alternative and null hypothesis are.

4.Select significance level

5.Identify the test statistic

6.Find the value of the test statistic by using the critical values or the p value

7.There needs to be a decision made to fail to reject or reject the Null Hypothesis. If the critical value is greater than the t value, the hypothesis would be rejected. If the significance level is greater than the p value, the hypothsis will also be rejected.

8.We also need to restate the decision in non- technical terms.

The remaining problems refer to the following scenario:

A claim is made that the average salary for all jobs in Minnesota is less than $75,000.You are going to test the claim using and assume that your data is normally distributed and the population standard deviation is not known.

2.Write the null and alternative hypotheses symbolically and identify which hypothesis is the claim.Then identify if the test is left-tailed, right-tailed, or two-tailed and explain why.

Answer and Explanation:

Enter your step-by-step answer and explanations here.

Test Hypothesis

H0 U=75,000 H1=U<75,000

This is a left tailed test because we have to test if it is less then 75000

Since o is unknown we use Z to test

Test Statistic z=XUo

Where x=sample mean

U Hypothesize mean

O=Standard mean

Use a=0.05 and left tailed z table we get P-Value

If test statistic is > critical value, reject the null hypothesis

If test statistic is < critical value, Do not reject the null hypothesis

Null hypothesis, H0: u1=$ 75000.

2) Alternative hypothesis, Ha: u1 <$75000.

We want to test that the population mean is less than $75,000.From this definition, the test is left-tailed.

3.Identify and explain which test statistic you will use for your hypothesis test: z or t?Find the value of the test statistic.

Answer and Explanation:

Test Statistic Z=Xuo Where X= Sample mean

Considering from information in excel spreadsheet where number of the observations are 364, then z- test statistic will be suitable test to use. To use z- test statistics, it demands the sample size be more than 30 and since in this case, n=364, it meets the condition for the use of the t-test statistics.

2) Since population variance is not known, the following formula will apply, Z= (sample mean-population mean)/sample variance divided by square root of number of observations.

Z= (71879-75000)/23367.36018/19.079

Z =-2.548

4.What is the critical value?Describe the rejection region.

Answer and Explanation:

Critical Value -1.64

Since it is one- tailed test, the critical value will be Z1-= -Z1-0.05= -Z0.95 which when observed from the normal distribution table, the critical value is 1.645.

2) Since it is one-sided, left-tailed, the rejection region is of null hypothesis is while the acceptance region of the null hypothesis is 1-.

5.Using the critical value approach, should you reject the null hypothesis or not reject the null hypothesis?Explain. After making your decision, restate it in non-technical terms and make a conclusion about the original claim.

Answer and Explanation:

If test statistic is > critical value, reject the null hypothesis

If test statistic is < critical value, Do not reject the null hypothesis

Using critical approach, the critical value is 1.645 while the Z- test statistics is -2.54

2) The decision rule is to reject HO, if Z<-Z1-., but in this case, Z is greater than Z1- thus we fail to reject the null hypothesis.

3) In non-technical terms, it means that there is no significant difference between the average salary for all jobs in the Minnesota.

4) Considering the initial claim, it is not true that the average salary for all jobs in Minnesota is less than $75,000.

6.Calculate the p-value for this hypothesis test, and state the hypothesis conclusion based on the p-value.Does this match your results from the critical value method?

Answer and Explanation:

Use a=0.05 and left tailed z table we get P-Value

From the statistical table, P-value is 0.005751 and the is 0.005.

2) The decision rule in using P-value for the null hypothesis is, P-value<, reject the null hypothesis,

3) From the above, it is clear that P-value is greater than level of significance. This means we fail to reject the null hypothesis.

4) The results using the P-value matches the results from critical value method because using both methods, we fail to reject the null hypothesis

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