MATH533 Project AJ Davis Department Stores PART B

MATH 533 (GM 533 DeVry Applied Managerial Statistics) Course Project; AJ Davis Department Stores (PART B)

Project Part B: Hypothesis Testing and Confidence Intervals
Your manager has speculated the following:

the average (mean) annual income was less than $50,000, the true population proportion of customers who live in an urban area exceeds 40%, the average (mean) number of years lived in the current home is less than 13 years, the average (mean) credit balance for suburban customers is more than $4300. Using the sample data, perform the hypothesis test for 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 α = .05, and explain your conclusion in simple terms. Also be sure to compute the p-value and interpret. Follow this up with computing 95% confidence intervals for each of the variables described in a.-d., and again interpreting these intervals. 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. All DeVry University policies are in effect, including the plagiarism policy. Project Part B report is due by the end of Week 6. Project Part B is worth 100 total points. See grading rubric below.

Submission: The report from part 3 + all of the relevant work done in the hypothesis testing (including Minitab) in 1., and the confidence intervals (Minitab) in 2 as an appendix.

Format for report:

Summary Report (about 1 paragraph on each of the speculations a.-d.) Appendix with all of the steps in hypothesis testing (the format of the Seven Elements of a Test of Hypothesis, in Section 6.2 of your text book) for each speculation a.-d. as well as the confidence intervals, and including all Minitab output


MATH533 Project AJ Davis Department Stores PART B
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