Assignment:
Determine the Null Hypothesis, Alternative Hypothesis and the Research Question.
1. Null Hypothesis: "There is no difference between the mean price of automobiles bought by younger and older consumers."
2. Alternative Hypothesis: "There is a difference between the mean price of automobiles bought by younger consumers and older consumers."
3. Research Question: "Is there a difference in the mean price of autos bought by younger consumers and older consumers?"
4. Resolve the 5 steps below
1. State the Null and Alternate hypothesis
2. Select the level of significance - the alpha value
3. Choose the test statistic to use
4. Determine the decision rule - the critical value of the test statistic
5. Use the sample data to compute the test statistic based on the sample, and Determine whether to reject the null or not
6. Final Step: Create a 150-200 word explanation for each of the 5 steps above
7. FYI: For the purposes of the question, 'younger' is consumers age 40 and younger, while 'older' is consumers older than 40. (the separation being 'middle age')
So there are basically 2 samples - Consumers who are 40 and younger, and consumers who are older than 40.
| Price |
Price($000) |
Age |
Type |
| 23197 |
23.197 |
46 |
0 |
| 23372 |
23.372 |
48 |
0 |
| 20454 |
20.454 |
40 |
1 |
| 23591 |
23.591 |
40 |
0 |
| 26651 |
26.651 |
46 |
1 |
| 27453 |
27.453 |
37 |
1 |
| 17266 |
17.266 |
32 |
1 |
| 18021 |
18.021 |
29 |
1 |
| 28683 |
28.683 |
38 |
1 |
| 30872 |
30.872 |
43 |
0 |
| 19587 |
19.587 |
32 |
0 |
| 23169 |
23.169 |
47 |
0 |
| 35851 |
35.851 |
56 |
0 |
| 19251 |
19.251 |
42 |
1 |
| 20047 |
20.047 |
28 |
1 |
| 24285 |
24.285 |
56 |
0 |
| 24324 |
24.324 |
50 |
1 |
| 24609 |
24.609 |
31 |
1 |
| 28670 |
28.67 |
51 |
1 |
| 15546 |
15.546 |
26 |
1 |
| 15935 |
15.935 |
25 |
1 |
| 19873 |
19.873 |
45 |
1 |
| 25251 |
25.251 |
56 |
1 |
| 25277 |
25.277 |
47 |
0 |
| 28034 |
28.034 |
38 |
1 |
| 24533 |
24.533 |
51 |
0 |
| 27443 |
27.443 |
39 |
0 |
| 19889 |
19.889 |
44 |
1 |
| 20004 |
20.004 |
46 |
1 |
| 17357 |
17.357 |
28 |
1 |
| 20155 |
20.155 |
33 |
1 |
| 19688 |
19.688 |
35 |
1 |
| 23657 |
23.657 |
35 |
0 |
| 26613 |
26.613 |
42 |
1 |
| 20895 |
20.895 |
35 |
0 |
| 20203 |
20.203 |
36 |
1 |
| 23765 |
23.765 |
48 |
0 |
| 25783 |
25.783 |
53 |
1 |
| 26661 |
26.661 |
46 |
1 |
| 32277 |
32.277 |
55 |
0 |
| 20642 |
20.642 |
39 |
1 |
| 21981 |
21.981 |
43 |
1 |
| 24052 |
24.052 |
56 |
0 |
| 25799 |
25.799 |
44 |
0 |
| 15794 |
15.794 |
30 |
1 |
| 18263 |
18.263 |
39 |
1 |
| 35925 |
35.925 |
53 |
0 |
| 17399 |
17.399 |
29 |
1 |
| 17968 |
17.968 |
30 |
1 |
| 20356 |
20.356 |
44 |
0 |
| 21442 |
21.442 |
41 |
1 |
| 21722 |
21.722 |
41 |
0 |
| 19331 |
19.331 |
35 |
1 |
| 22817 |
22.817 |
51 |
1 |
| 19766 |
19.766 |
44 |
1 |
| 20633 |
20.633 |
51 |
1 |
| 20962 |
20.962 |
49 |
1 |
| 22845 |
22.845 |
41 |
1 |
| 26285 |
26.285 |
44 |
0 |
| 27896 |
27.896 |
37 |
0 |
| 29076 |
29.076 |
42 |
1 |
| 32492 |
32.492 |
51 |
0 |
| 18890 |
18.89 |
31 |
1 |
| 21740 |
21.74 |
39 |
0 |
| 22374 |
22.374 |
53 |
0 |
| 24571 |
24.571 |
55 |
1 |
| 25449 |
25.449 |
40 |
0 |
| 28337 |
28.337 |
46 |
0 |
| 20642 |
20.642 |
35 |
1 |
| 23613 |
23.613 |
47 |
1 |
| 24220 |
24.22 |
58 |
1 |
| 30655 |
30.655 |
51 |
0 |
| 22442 |
22.442 |
41 |
1 |
| 17891 |
17.891 |
33 |
1 |
| 20818 |
20.818 |
46 |
1 |
| 26237 |
26.237 |
47 |
0 |
| 20445 |
20.445 |
34 |
1 |
| 21556 |
21.556 |
43 |
1 |
| 21639 |
21.639 |
37 |
1 |
| 24296 |
24.296 |
47 |
0
|