In: Statistics and Probability
Select two data values from your raw data – one that is inside of the confidence interval and one that is outside – one must be at the high end of the data and one at the low end – and construct two hypothesis tests, one for each value. One of the tests should be a “less than”, the other should be a “greater than”, depending on the value being tested. Use a 95% level of confidence.
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We first test a two side test to determine the confidence interval. The confidence interval is found to be (467.7,752.2)
Then we choose a lower end value inside this confidence interval. Say 500 among th raw data and perform "greater than" alternative hypothesis test.
Then we choose a higher end data say, 3600 among the raw data ehich is outside the confidence interval and perform "less than" alternative hypothesis test.
conclusion for the lower end test : p value =0.065>0. 05 so we accept null hypothesis and conclude there is no significant difference in the mean. (hypothesised mean=500)
Conclusion for the higher end test : p value =0<0.05 so we reject null and conclude there is significant difference in the mean. (hypothesised mean=3600)