Assignment:
Q1- Using your experience from previous or current employment, provide a business example where you could use a t-test to assist in a business decision. State the null and alternative hypothesis. The null and alternative should be the exact opposite of each other and the t-test will be looking for a difference between two groups.
Example: A business owner is looking to open a new location in addition to the six stores he already has open. He is curious if the stores located closer to the Interstate have a higher volume of customers on the weekend. He has 3 stores within 1 mile of an Interstate and 3 stores that are greater than 1 mile of an Interstate.
Null: The stores within 1 mile of an Interstate do not have a significantly different customer volume than the stores greater than 1 mile from an Interstate.
Alternative: The stores within 1 mile of an Interstate have a significantly different customer volume than the stores greater than 1 mile from an Interstate.
Q2- This is a continuation of the example you provided in Q1. Provide the confidence level you would use for the example. (.01, .05, or .10)
Also, become familiar with the 5-step hypothesis testing method discussed. How will you state your decision?
Example: The test statistic for this analysis exceeded the critical value, therefore we (accept/reject) the null. As a result, the business owner should...