# Deliverable 4 – Hypothesis Test

Assignment Content

Competency

Evaluate hypothesis tests for population parameters from one population.

Instructions

Scenario (information repeated for deliverable 01, 03, and 04)

A major client of your company is interested in the salary distributions of jobs in the state of Minnesota that range from \$30,000 to \$200,000 per year. As a Business Analyst, your boss asks you to research and analyze the salary distributions. You are given a spreadsheet that contains the following information:

• A listing of the jobs by title .
• The salary (in dollars) for each job.
In prior engagements, you have already explained to your client about the basic statistics and discussed the importance of constructing confidence intervals for the population mean. Your client says that he remembers a little bit about hypothesis testing, but he is a little fuzzy. He asks you to give him the full explanation of all steps in hypothesis testing and wants your conclusion about two claims concerning the average salary for all jobs in the state of Minnesota.

Background information on the Data

The data set in the spreadsheet consists of 364 records that you will be analyzing from the Bureau of Labor Statistics. The data set contains a listing of several jobs titles with yearly salaries ranging from approximately \$30,000 to \$200,000 for the state of Minnesota.

What to Submit

## Data

tants and Auditors

n

59630

81590

58140

73870

66710

38120

79960

101500

## Question 1

1. Describe the 8 steps in the process for hypothesis testing. Include an explanation of the decision criteria for rejecting the null hypothesis for both the p-value method and the critical value method.

## Question 2

Calculations/Values

Standard Deviation
n
mu
Mean (x-bar)
Test Statistic
Critical Value
P-value

2a. Write the null and alternative hypotheses symbolically and identify which hypothesis is the claim. Then identify if the test is left-tailed, right-tailed, or two-tailed and explain why.

2b. Identify and explain which test statistic you will use for your hypothesis test: z or t? Find the value of the test statistic.

2c. What is the critical value? Describe the rejection region of this hypothesis test.

2d. Using the critical value approach, should you reject the null hypothesis or not reject the null hypothesis? Explain. After making your decision, restate it in non-technical terms and make a conclusion about the original claim.

2e. Calculate the p-value for this hypothesis test, and state the hypothesis conclusion based on the p-value. Does this match your results from the critical value method?

## Question 3

Mean (x-bar)
Standard Deviation
n
mu
Test Statistic
Critical Value
P-value

3a. Write the null and alternative hypotheses symbolically and identify which hypothesis is the claim. Then identify if the test is left-tailed, right-tailed, or two-tailed and explain why.

3b. Identify and explain which test statistic you will use for your hypothesis test: z or t? Find the value of the test statistic.

3c. What is the critical value? Describe the rejection region of this hypothesis test.

3d. Using the critical value approach, should you reject the null hypothesis or not reject the null hypothesis? Explain. After making your decision, restate it in non-technical terms and make a conclusion about the original claim.

3e. Calculate the p-value for this hypothesis test, and state the hypothesis conclusion based on the p-value. Does this match your results from the critical value method?

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