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Review the steps involved in a statistical hypothesis test. How do we set up the null...

Review the steps involved in a statistical hypothesis test. How do we set up the null and alternative hypotheses?

How do we set the level of significance?

Can you think of a business research situation where you could apply such processes?

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Expert Solution

Example of hypothesis test (testing for mean) -

The teacher checked the difference between the two Real World Project assessment scores of MSc 25’s 111 Real World Projects. He is interested in proving that the average difference is less than 20 points (on a 200 point scale). He finds an average difference in the sample of 111 projects of 19.22 with a standard deviation of the differences of 16.00. Does he have sufficient proof to show that the average difference is significantly less than 20 at the 5% significance level?

Let denotes the average difference.

Conclusion : There is not  sufficient proof to show that the average difference is significantly less than 20 at the 5% significance level.

milcah answered 6 months ago
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