Statistic 6

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A town official claims that the average vehicle in their area sells for more than the 40th percentile of your data set. Using the data, you obtained in week 1, as well as the summary statistics you found for the original data set (excluding the super car outlier), run a hypothesis test to determine if the claim can be supported.  Make sure you state all the important values, so your fellow classmates can use them to run a hypothesis test as well.  Use the descriptive statistics you found during Week 2 NOT the new SD you found during Week 4.  Because again, we are using the original 10 sample data set NOT a new smaller sample size.  Use alpha = .05 to test your claim.

(Note: You will want to use the function =PERCENTILE.INC  in Excel to find the 40th percentile of your data set.  Hopefully this Excel function looks familiar to you from Week 2.)

First determine if you are using a z or t-test and explain why. Then conduct a four-step hypothesis test including a sentence at the end justifying the support or lack of support for the claim and why you made that choice.

I encourage you to review the Week 6 Hypothesis Testing PDF at the bottom of the discussion.  This will give you a step by step example on how to calculate and run a hypothesis test using Excel. I DO NOT recommend doing this by hand.  Let Excel do the heavy lifting for you.  You can also use this PDF in Quizzes section.

There were 5 additional PDFs that were created to help you with the Homework, Lessons and Tests in Quizzes section.  While they won't be used to answer the questions in the discussion, they are just as useful and beneficial.  I encourage you to review these ASAP!  These PDFs are also located at the bottom of the discussion.

“Before you post your initial discussion, you must submit it in the assignment area in a Word file, so its originality can be checked by Turnitin.com. I will take points off if you do not do this. Your score will appear in the same place you submit your file. It can take up to 24 hours for a score to return, but usually, it is less than 30 minutes. Before you post your discussion in the activity, make sure your originality index (%) is less than 15. If it is greater than 15%, rewrite your discussion, submit it again in the assignment area and check the %. Keep doing this until your % is less than 15%. Only post your discussion when the % is less than 15. Here are two hints to get your score below 15%: 1) leave your list of supporting material out of the file you submit for checking (don't forget to add these back when you post your discussion in the forum) and 2) use your own words, not quotes.

Once you have posted your initial discussion, you must reply to at least two other learner's post. Each post must be a different topic. So, you will have your initial post from one topic, your first follow-up post from a different topic, and your second follow-up post from one of the other topics. Of course, you are more than welcome to respond to more than two learners.”

Instructions: Make sure you include your data set in your initial post as well.  You must also respond to at least 2 other students. Responses may include direct questions.

In your first peer response post, look at the hypothesis test results of one of your classmates and explain what a type 1 error would mean in a practical sense. Looking at your classmate's outcome, is a type 1 error likely or not? What specific values indicated this?

In your second peer response post, using your classmate's values, run another hypothesis test using this scenario:  A town official claims that the average vehicle in their area Does Not sell for 80th percentile of your data set.  Conduct a four-step hypothesis test including a sentence at the end justifying the support or lack of support for the claim and why you made that choice.  Note: this test will be different than the initial post, starting with the hypothesis scenario. Use alpha = .05 to test your claim.

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