Hypothesis Testing and Confidence Intervals with Minitab

Your manager has speculated the following:

a. the average (mean) annual income was less than $50,000,
b. the true population proportion of customers who live in an urban area exceeds
40%,
c. the average (mean) number of years lived in the current home is less than 13
years,
d. the average (mean) credit balance for suburban customers is more than
$4300.

1 – Using the sample data, perform the hypothesis testfor each of the above situations in order to see if there is evidence to support your manager’s belief in each case a.-d. In each case use the Seven Elements of a Test of Hypothesis, in Section 6.2 of your text book with ? = .05, and explain your conclusion in simple terms. Also be sure to compute the p-value and interpret.

2 – Follow this up with computing 95% confidence intervalsfor each of the variables described in a.-d., and again interpreting these intervals.

3 – Write a report to your manager about the results, distilling down the results in a way that would be understandable to someone who does not know statistics. Clear explanations and interpretations are critical.

Requirements:
A- Summary Report (about 1 paragraph on each of the speculations a.-d.)
B- Appendix with all of the steps in hypothesis testingfor each speculation a.-d. as well as the confidence intervals, and including all Minitab output