Rank Company Name Profits ($ Millions) 1 Walmart 16,363 2 Costco 2,058 3 Home De
ID: 3314814 • Letter: R
Question
Rank
Company Name
Profits ($ Millions)
1
Walmart
16,363
2
Costco
2,058
3
Home Depot
6,345
4
China Resources National
2,450
5
Target
-1,636
6
AEON
387
7
Lowe's
2,698
8
Best Buy
1,233
9
Jardine Matheson
1,710
10
Alimentation Couche-Tard
811
TOTAL
32419
The mean = 3241.9, standard deviation = 5037.19, n= 10
Claim: The mean profit for the for the Top 10 companies in the Retail field is greater than 3241.9.
Use the 0.05 significance level in this test.
1. State the null and alternative hypotheses in words (as sentences). Label which is which.
2. State the null and alternative hypotheses in symbolic form. Use correct notation. Label which is which.
3. Do the data meet the conditions for using our method of testing the hypothesis?
Clearly show why or why not. And make a conclusion: are the conditions met?
4. There is no #4! Don’t do #4 for the Discussion Forum.
5. For this test , is the test statistic a Z distribution or T distribution or something else?
Explain how you know.
Write the Formula for the test statistic (NOT with numbers, just the general formula).
6. Find the value of the test statistic. Write the full expression you are calculating with the numbers in place. Then find its decimal value, rounded to 3 decimal places.
7.. Do NOT find the p-value in this step, but prepare to find it by:
a) Determine if this is a left-tail, right-tail, or 2-tail test.
b) Shade the portion of the curve that is relevant
to finding the p-value.
c) And label relevant number(s) on the horizontal axis.
8. Find the p-value
a) Write the calculator command you use.
b) State the p-value, rounded to 3 decimal places.
9. a) Are the results significant?
b) HOW do you know? (why did you decide that?)
c) State any and all of these that are correct conclusions:
Reject H0 Do not reject H0 Accept H0 Data do not support Ha Data support Ha
10. Write a sentence or two in clear English stating the conclusion in the context of the problem (not using technical statistics language). So, include words from the statement of the situation. E.g. in this case: weight loss, Paleo diet, foods typical of current times.
Rank
Company Name
Profits ($ Millions)
1
Walmart
16,363
2
Costco
2,058
3
Home Depot
6,345
4
China Resources National
2,450
5
Target
-1,636
6
AEON
387
7
Lowe's
2,698
8
Best Buy
1,233
9
Jardine Matheson
1,710
10
Alimentation Couche-Tard
811
TOTAL
32419
Explanation / Answer
Below are the null and alternate hypothesis
H0: mu = 3241.9
H1: mu > 3241.9
Data meet the conditions
t-distribution as population std.dev. is not given
test statistics, t = (xbar - mu)/SE
t = (3241.9 - 3241.9)/(5037.19/sqrt(10)) = 0
Right tailed test
p-value = 0.5
As p-value is greater than the significance level of 0.05, we fail to reject H0
Hence, there are not significant evidence to conclude that mean profit of top 10 companies in Retail field is greater than 3241.9
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