Question

In: Statistics and Probability

Find a real-world business example with data set (or example from a case study) and comment...

Find a real-world business example with data set (or example from a case study) and comment on the way hypothesis testing can be applied to answer a relevant business question. Identify the question(s) in your post and provide the data set at an attachment as a reference. please try to do it with R.

Solutions

Expert Solution

Problem Statement

Is there enough evidence in the data that population average price of diamond for color “E” is more than 1500.

Dataset:

Color

Price

D

1302

E

1510

G

1510

G

1260

D

1641

E

1555

F

1427

G

1427

H

1126

I

1126

F

1468

G

1202

E

1327

I

1098

E

1693

F

1551

G

1410

G

1269

H

1316

H

1222

E

1738

F

1593

G

1447

H

1255

F

1635

H

1485

F

1420

H

1420

F

1911

H

1525

F

1956

H

1747

I

1572

E

2942

G

2532

E

3501

E

3501

F

3501

F

3293

G

3016

F

3567

G

3205

D

3490

E

3635

F

3635

F

3418

D

3921

F

3701

F

3480

G

3407

E

3767

F

4066

E

4138

F

3605

G

3529

F

3667

I

2892

G

3651

G

3773

F

4291

E

5845

G

4401

G

4759

H

4300

F

5510

G

5122

H

5122

I

3861

F

5881

F

5586

F

5193

H

5193

F

5263

I

5441

I

4948

H

5705

F

6805

H

6882

H

6709

I

6682

E

3501

G

3432

F

3851

H

3605

E

3900

H

3415

H

4291

E

6512

E

5800

F

6285

Soln

data_5Nov = read.csv(file.choose(),header = T)

head(data_5Nov)

Color Price

1     D 1302

2     E 1510

3     G 1510

4     G 1260

5     D 1641

6     E 1555

data = data_5Nov[data_5Nov$Color=="E",] ## to get only the ‘E’ Color records

Alpha = 0.05

Null and Alternate Hypothesis

H0: µ = 1500

Ha: µ > 1500

t.test(data$Price, mu = 1500,alternative = "greater")

        One Sample t-test
 
data:  data$Price
t = 4.75, df = 15, p-value = 0.000129
alternative hypothesis: true mean is greater than 1500
95 percent confidence interval:
 2717.118      Inf
sample estimates:
mean of x 
 3429.062 
 
 

Result

Since the p-value is less than 0.05, we reject the null hypothesis in favour of alternate hypothesis.

Conclusion

Population average price of diamond for color “E” is more than 1500.


Related Solutions

Find a real world business example or examples in a case study and comment on the...
Find a real world business example or examples in a case study and comment on the way hypothesis testing can be applied to answer a relevant business question. Identify the question(s) in your post and provide the data set at an attachment as a reference. Finally, explain how you would approach using the data set to answer the business question. This was the exact question posted.
Find a real-world business example or examples in a case study and comment on the way...
Find a real-world business example or examples in a case study and comment on the way hypothesis testing can be applied to answer a relevant business question. Identify the question(s) in your post and provide the data set at an attachment as a reference. Finally, explain how you would approach using the data set to answer the business question.
Find an article or generate a data set from a real life example understanding the relationship...
Find an article or generate a data set from a real life example understanding the relationship between two or more variables. Determine the significant and insignificant factors and state why they are significant or not significant. Were there any surprises?
Provide an example of a firm or a small business from the real world that is...
Provide an example of a firm or a small business from the real world that is surviving the dynamic nature of monopolistic competition, and discuss some approaches they have used (or are currently using) to compete and survive in the market.
Provide an example of a firm or a small business from the real world that is...
Provide an example of a firm or a small business from the real world that is surviving the dynamic nature of monopolistic competition, and discuss some approaches they have used (or are currently using) to compete and survive in the market.
Use a personal example or a text example or a business problem from the real world...
Use a personal example or a text example or a business problem from the real world to illustrate one or more of the Decision Analysis models covered. Why was the particular model chosen? Which model(s) might provide a better decision for this problem? Assign probabilities to the problem (if not already assigned) and determine the Expected Value solution. *Please use different answers from the chegg since my friends already using it. Thankyou.
1 a) Imagine a real-world example (application, situation, or business) that can benefit from Data Analytics....
1 a) Imagine a real-world example (application, situation, or business) that can benefit from Data Analytics. Discuss what sorts of data can be available in your example (not necessarily only one dataset), making sure some of the data to be structured, and some to be unstructured. You need to be specific about the data details, such as: where it comes from, how it can be collected, how it looks like (give few specific samples), and most importantly: how the data...
Ethical Dilemma Case Study. Each student must research a real-world example of an ethical dilemma in...
Ethical Dilemma Case Study. Each student must research a real-world example of an ethical dilemma in the field of engineering.
example of case study in terms of business analytics
example of case study in terms of business analytics
In about 150 words, discuss the challenging goals and give example from the real business world.
In about 150 words, discuss the challenging goals and give example from the real business world.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT