Question

How do I do this in excel? The data contains data on monthly mortgage payments for 150 homeowners for year 2010 and year 2015. Note that this is a matched sample.

1. Using the appropriate Excel data analysis tool or formulas, test the hypothesis to determine if mortgage payments have risen from 2010 to 2015. The data is too long. If you can make a small example with random variables. Use α = .05.
2. State hypothesis used for this.

Answer 1

Given that it is a matched sample which means both the samples are paired and we can use paired t-test.

In excel first select Data menu and there click on Data Analysis in that we have an option for t-test Paired two samples for two means. Select that and it will prompt you for select variables use that.

b) Hypothesis for your problem is

H₀ :

H₁ :

where = population mean of 2010 data

= population mean of 2015 data

And consider one-tail values from your excel results.