Hypothesis Testing for Regional Real Estate Company
Introduction
Include in this section a brief overview, including the purpose of this analysis.
Briefly describe how you generated your random sample of size 750.
Setup
Define your population parameter.
Write the null and alternative hypotheses. Note: Remember, the salesperson believes that his sales are higher.
Specify the name of the test you will use and identify whether it is a left-tailed, right-tailed, or two-tailed test.
Data Analysis Preparations
Describe the sample.
Provide the descriptive statistics of the sample.
Provide a histogram of the sample.
Specify whether the assumptions or conditions to perform your identified test have been met.
Identify the appropriate test statistic, then calculate the test statistic and identify your significance level.
Calculations
Calculate the p value using one of the following tests:
=T.DIST.RT([test statistic], [degree of freedom])
=T.DIST([test statistic], [degree of freedom])
=T.DIST.2T([test statistic], [degree of freedom])
Note: For right-tailed, use the T.DIST.RT function in Excel, left-tailed is the T.DIST function, and two-tailed is the T.DIST.2T function. The degree of freedom is calculated by subtracting 1 from your sample size.
Use the normal curve graph as a reference to describe where the p value and test statistic would be placed.
Test Decision
Discuss how the p value relates to the significance level.
Compare the p value and significance level, and make a decision to reject or fail to reject the null hypothesis.
Explain in one paragraph how your test decision relates to your hypothesis and whether your conclusions are statistically significant.
