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Setup: Define Pacific region population parameter, including hypothesis statements, and specify the appropriate test.
–Define Pacific population parameter.
–Write the null and alternative hypotheses. Note: Remember, the salesperson believes that his sales are higher.
–Specify name of the test is Pacific Region.
–Identify whether it is a left-tailed, right-tailed, or two-tailed test.
–Identify significance level.
-Data Analysis Preparations: Describe sample summary statistics, provide a histogram and summary, check assumptions, and find the test statistic and significance level.
–Provide the descriptive statistics (sample size, mean, median, and standard deviation).
–Provide a histogram of the sample.
–Describe the sample by writing a sentence describing the shape, center, and spread of the sample.
–Determine whether the conditions to perform identified test have been met.
-Calculations: Calculate the p value, describe the p value and test statistic in regard to the normal curve graph, discuss how the p value relates to the significance level, and compare the p value to the significance level to reject or fail to reject the null hypothesis.
-Determine the appropriate test statistic, then calculate the test statistic.
Note: This calculation is (mean – target)/standard error. In this case, the mean is the Pacific regional mean (Pacific), and the target is 275.
–Calculate the p value.
–Note: For right-tailed, use the T.DIST.RT function in Excel, left-tailed is the T.DIST function, and two-tailed is the T.DIST.2T function. The degree of freedom is calculated by subtracting 1 from the sample size.
–Choose your test from the following:
=T.DIST.RT([test statistic], [degree of freedom])
=T.DIST([test statistic], [degree of freedom], 1)
=T.DIST.2T([test statistic], [degree of freedom])
–Using the normal curve graph as a reference, describe where the p value and test statistic would be placed.
-Test Decision: Discuss the relationship between the p value and the significance level, including a comparison between the two, and decide to reject or fail to reject the null hypothesis.
–Discuss how the p value relates to the significance level.
–Compare the p value and significance level, and make a decision to reject or fail to reject the null hypothesis.
-Conclusion: Discuss how the test relates to the hypothesis and discuss the statistical significance.
–Explain in one paragraph how the test decision relates to the hypothesis and whether the conclusions are statistically significant.
