Stats Phase 3

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Mathematics

Description

Option 2 Scenario

Option 2 Data Set

  1. Discuss the process for hypothesis testing.
    1. Explain the 8 steps of hypothesis testing
    2. When performing the 8 steps for hypothesis testing, which method do you prefer; P-Value method or Critical Value method? Why?
  2. Perform the hypothesis test.

    If you selected Option 1 (Salaries):

    Claim: The average salary for all jobs in Minnesota is less than $65,000. Test the claim using α = 0.05 and assume your data is normally distributed and σ is unknown.

    If you selected Option 2 (Patients at NLEX hospital):

    Claim: The average age of all patients admitted to the hospital with infectious diseases is less than 65 years of age. Test the claim using α = 0.05 and assume your data is normally distributed and σ is unknown.

    Based on your selected topic, perform and document the following steps:

    1. Write the null and alternative hypothesis symbolically and identify which hypothesis is the claim.
    2. Is the test two-tailed, left-tailed, or right-tailed? Explain.
    3. Which test statistic will you use for your hypothesis test; z-test or t-test? Explain.
    4. What is the value of the test-statistic? Show your calculation
    5. What is the P-value? Explain how you determined it
    6. What is the critical value? Explain how you calculated it
    7. What is your decision? Reject the null or do not reject the null? Explain why you made your decision including the results for your p-value and the critical value.
    8. State the final conclusion in non-technical terms.

Please show your work for the construction of the test-statistic and explain your process for finding the p-value and critical value. You may use the Equation Editor to format your calculation steps on the Word document or attach an Excel spreadsheet clearly showing each calculation for #B4 and #B5, but your answers still need to appear on the Word document. Also, be sure to number each response in your paper using the same numbers as above

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Explanation & Answer

Attached.

Running Head: Hypothesis Testing.

1

Hypothesis Testing
Institutional Affiliation
Date

Hypothesis Testing.

2

Steps of Hypothesis Testing.
1. State the null and alternative hypothesis (H0 and H1)
2. State the level of significance. For example, ∝=0.05. The purpose of hypothesis testing is
not to question the computed value of the sample statistics but to make a judgement about
the difference between the sample statistic and a hypothesized sample parameter.
Therefore, we need to make a decision on the criterion to use for deciding whether to
accept or reject the null hypothesis. A higher significance level means the chances of
dropping the null hypothesis when it is true are high. Decide which distribution to use in
hypothesis testing. That is the test statistic (Efron, 2014).
3. Determine the critical region or regions.
4. Compute the test statistic value.
5. Make a sta...


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