Assignment:
Q.1. A high-end computer manufacturer sets the retail cost of their computers based in the manufacturing cost, which is $1800. However, the company thinks there are hidden costs and that the average cost to manufacture the computers is actually much more. The company randomly selects 40 computers from its facilities and finds that the mean cost to produce a computer is $1950 with a standard deviation of $500. Run a hypothesis test to see if this thought is true answer the following questions.
1 What are the null hypothesis and alternative hypothesis here?
2. Assuming confidence level of 95% , determine the alpha and critical value.
3. Determine whether a left tailed, right tailed or two tailed test is performed.
4. Calculate the test statistics score ( z test or t test)
5. Compare the test statistics score with the critical value. Depict your results graphically.
6. Determine whether the null hypothesis is rejected or not. Interpret your results.
Q.2. Cramson business School randomly collected overall GPA from 100 junior business students and calculated the sample mean GPA of 3.32. They do not agree with the claim that the GPA of junior business students across the US is 3.48 and believes it to be less than that. Conduct a hypothesis testing to see whether or not the claim is valid and answer the questions below.
1 What are the null hypothesis and alternative hypothesis here?
2. Assuming confidence level of 95% , determine the alpha and critical value.
3. Determine whether a left tailed, right tailed or two tailed test is performed.
4. Calculate the test statistics score ( z test or t test)
5. Compare the test statistics score with the critical value. Depict your results graphically.
6. Determine whether the null hypothesis is rejected or not. Interpret your results.
Q.3. Suppose Education department of New York State is contemplating whether the state of New York receives a significantly different amount of public school funding (per student) than the USA average. They find that the USA mean public school yearly funding is $6800 per student per year, with a standard deviation of $400. Suppose the department collects a sample (n = 100) from NY and determines that the sample mean for NY (per student per year) is $6873. Use the z-test to run a hypothesis test to determine if Michigan receives a significantly different amount of funding for public school education (per student per year).
1 What are the null hypothesis and alternative hypothesis here?
2. Assuming confidence level of 95% , determine the alpha and critical value.
3. Determine whether a left tailed, right tailed or two tailed test is performed.
4. Calculate the test statistics score ( z test or t test)
5. Compare the test statistics score with the critical value. Depict your results graphically.
6. Determine whether the null hypothesis is rejected or not. Interpret your results.