BUS520 CONFIDENCE INTERVALS AND HYPOTHESIS TESTING

BUS520 Confidence Intervals and Hypothesis Testing - Business Finance
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Complete the following tasks in the Module 2 SLP assignment template:Generate a 95\% confidence interval for the following two variables by hand: Annual Amount Spent on Organic Food and Age.Generate a 95\% confidence interval for the following two variables using the Excel formula =CONFIDENCE.T(): Annual Income and Number of People in the Household.Interpret the confidence intervals for each of the variables.The client insists the average income of his organic food customers is $150,000. Conduct a hypothesis test at the 0.10 level to test his statement. What is your decision? bus520_module_2_slp_2_12_january_2020.xlsx Unformatted Attachment Preview Trident University BUS520: Business Analytics and Decision Making Module 2: SLP Template FILL IN ALL CELLS THAT ARE HIGHLIGHTED IN YELLOW Please remember to save this file with your last name in the file name. For example: BUS520 Module 2 SLP T Dawn Franis Name: Annual Amount Spent on Organic Food 7348 11598 9224 12991 16556 11515 10469 17933 18173 12305 9080 9113 6185 6470 6000 6760 8579 7393 8161 10800 6160 10800 8543 17666 12644 14308 9737 13301 18106 11468 9547 7812 15521 Age 77 47 23 38 58 44 34 75 32 39 65 48 48 49 57 71 47 47 28 63 24 66 24 38 54 28 58 27 48 26 52 29 75 Annual Income 109688 109981 112139 113420 114101 115100 116330 116339 117907 119071 58603 58623 61579 62180 62202 68041 68407 69618 73079 75900 77129 79618 81131 86246 89167 89576 92296 93614 93954 95937 100846 103276 104112 Number of People in Household 3 5 4 5 5 5 5 6 7 5 5 4 2 2 5 2 4 3 4 5 3 6 4 6 5 5 4 5 6 5 4 2 5 Gender (0 = Male; 1 = Female) 1 1 1 1 0 0 0 0 0 1 1 1 1 0 1 0 1 1 0 1 1 0 0 1 1 1 0 1 1 1 0 1 1 7598 7783 17737 7824 6552 11232 6540 4200 7225 5370 4476 2800 7839 3472 8854 8900 12791 12712 13321 8802 14369 7908 17840 15107 12070 6389 6606 6291 7425 11436 7612 7515 13115 11870 8450 16324 9331 9184 16803 10709 14456 16634 12227 13476 14554 9393 14594 45 74 56 30 57 41 23 28 23 45 33 42 39 60 57 41 67 73 57 64 24 25 34 78 34 34 41 62 57 23 78 36 44 75 70 38 35 65 68 48 24 46 43 58 66 68 74 105119 105925 106084 108616 109038 109585 37834 38940 42145 48677 48997 49058 49609 53279 53917 54716 126306 130893 134488 135711 139701 142014 142857 143182 150987 152041 154702 155552 157329 163794 164108 165851 172497 174458 177517 183779 185111 186467 189137 194351 194380 197358 197400 198650 202859 203591 206216 4 3 6 3 2 5 5 5 5 5 4 1 4 1 5 5 5 5 5 4 5 4 6 5 5 2 3 1 3 5 4 4 5 5 4 5 4 4 6 5 5 5 5 5 5 4 5 0 1 0 1 0 1 0 0 0 1 1 1 1 0 0 0 0 1 1 0 1 1 0 1 1 1 0 1 0 1 0 0 1 0 1 0 0 0 0 1 0 0 1 0 1 1 1 6628 11240 13101 14034 17837 7849 10578 11325 7105 16460 8390 14956 10903 12054 11697 12781 17456 12835 13403 15051 14225 11196 11475 5605 9890 13227 11200 9600 15703 6486 9430 7755 8100 14821 10650 12589 11600 13000 17065 16500 8600 11900 16723 16759 32 61 42 60 64 53 62 78 44 58 27 68 21 70 38 25 30 70 37 40 29 54 52 65 72 40 36 43 38 73 41 35 21 59 56 42 46 34 70 55 38 51 66 43 207679 210498 210678 211249 211961 212851 213035 214457 215442 220178 220403 220893 221223 221498 222618 229072 229685 230228 235617 238087 240768 242529 243765 244625 245208 247648 249805 252033 252812 257143 258167 258640 261020 266223 266269 267565 268380 269431 269839 270441 272795 274846 276250 277231 2 5 5 5 6 2 5 5 2 5 3 5 4 5 5 5 6 5 5 5 5 4 5 2 4 5 4 4 5 1 4 2 3 5 5 5 4 4 6 5 2 4 5 5 0 0 1 0 1 1 1 0 0 1 1 1 1 1 1 1 1 1 0 0 0 0 1 0 1 0 1 0 1 1 1 1 1 1 1 1 1 1 0 0 0 1 0 0 le: BUS520 Module 2 SLP Template, Doe.doc FILL IN ALL CELLS THAT ARE HIGHLIGHTED IN YELLOW QUESTION 1: Generate a 95\% confidence interval for the following two variables by hand: Annual Amount Spen Recall: The formula for a confidence interval when the population standard deviation is unknown is: 𝑥ҧ Average Annual Amount Spent on Organic Food (𝑥 )̅ t-value from the t-table (t ) standard deviation for this variable (s ) number of observations (n ) Margin of Error Upper Limit of Confidence Interval Lower Limit of Confidence Interval #DIV/0! #DIV/0! #DIV/0! hand: Annual Amount Spent on Organic Food and Age. 𝑠 known is: 𝑥ҧ ± 𝑡 ∗ ( 𝑛) Average Age (𝑥 )̅ t-value from the t-table (t ) standard deviation for this variable (s ) number of observations (n ) Margin of Error Upper Limit of Confidence Interval Lower Limit of Confidence Interval #DIV/0! #DIV/0! #DIV/0! FILL IN ALL CELLS THAT ARE HIGHLIGHTED IN YELLOW QUESTION 2: Generate a 95\% confidence interval for the following two variables using the Excel formula =CONFIDENCE.T(): Annual Income and Number of People in the Household. Remember, this formula will just give you the margin of error. You will still need to add it to the mean and subtract it from the mean to get the upper and lower limits of the confidence interval. margin of error from the =CONFIDENCE.T() formula Average Annual Income Upper Limit of Confidence Interval Lower Limit of Confidence Interval margin of error from the =CONFIDENCE.T() formula Average Number of People Upper Limit of Confidence Interval Lower Limit of Confidence Interval QUESTION 3a: Interpret the confidence intervals for Average Annual Income. QUESTION 3b: Interpret the confidence intervals for Average Number of People 0 0 0 0 FILL IN ALL CELLS THAT ARE HIGHLIGHTED IN YELLOW QUESTION 4: The client insists the average income of his organic food customers is $150,000. Conduct a hypothesis test at the 0.10 level to test his statement. What is your decision? Step 1: State the Null and Alternate Hypotheses Null Hypothesis Alternate Hypothesis Step 2: Determine Alpha (Stated in Question) Step 3: Determine Which Test Statistic Will Be Used Step 4: Formulate a Decision Rule Step 5: Make a Decision Hint: This will be a 2-tail t-test. 0.10 ... Purchase answer to see full attachment
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