One Sample Hypothesis Testing Essay

One Sample Hypothesis Testing

Res/342
December 2, 2011

One Sample Hypothesis Testing
Introduction:
Hypothesis Statement Verbal and Numerical
In one’s personal life and in business it is important to have the know-how to gather information to make a decision.   An individual considering buying an automobile has many concerns and needs a great deal of information to make a good decision.   What kind of vehicle to buy, how much to spend, safety, and mileage are a few things they consider.   Team A reviewed and analyzed the data files in the Whitner Autoplex data set.   There are 80 elements and three variables in the data set. The variables include selling price in dollars, age of buyers, and the vehicle origin domestic or import.   Eighty random samples were taken from the data set to compare the age groups with the number of purchases of domestic or import vehicles.   The data from the data set was analyzed to formulate the following hypothesis statement:   Do buyers over age 42 buy more domestic cars than buyers under age 42?   Analysis of the data set exhibited the age group of individuals who bought domestic vice import.   The following is the breakdown:
  Age Purchased Purchased
Group Domestic   Import
25 to 29     0 of 6     6 of 6
30 to 34   1 of 9     8 of 9
35 to 39   5 of 15   10 of 15
40 to 44   7 of 18     9 of 18
45 to 49   7 of 14     7 of 14
50 to 54   0 of 5     5 of 5
55 to 59   7 of 10     3 of 10

A null hypothesis is assumed true until a hypothesis test provides evidence that indicates otherwise.   A null hypothesis is written with the symbol Ho and an alternative hypothesis is written with the symbol Ha.   The numerical statement for the hypothesis is:
Ho: mu ≤ 42 domestic Ha: mu < 42 Domestic.   Our study rejects the null hypothesis.