Research and Evaluation/342 Wk2

Hypothesis Testing: Whitner Autoplex Data

Scott l. Earle, Tyrie Rozier, Josh Youngblood, Misty Landwehr, Timmothy Hines

Research and Evaluation/342

February 20, 2011

Dr. Bernadette Tjarks

Abstract

Team B will use the Whitner Autoplex data set to develop a one sample hypothesis test paper. This paper will formulate the numerical and verbal hypothesis by first describing the five-step hypothesis test and then show how each step applies to the Autoplex data.

Hypothesis Testing Whitner Autoplex

Businesses use different types of data to conduct successful transactions on a daily basis. Managers need to be able to use this information to decide how best to move their organizations forward and maintain a competitive edge over opponents in similar fields. One such business is the Whitner Autoplex dealership. The data for this vehicle dealership provided by the University of Phoenix student website lists different variables that can be considered in formulating different guesses, or hypothesis, about how the dealership is operating. The information includes the selling price of the cars, the age of the buyers, and whether or not the car is imported or domestic. Team B has formulated the question, “Is the average age of customer sales at Whitner Autoplex greater than or equal to 42 years of age?” Before we begin the process, it is important to understand how managers can use this information to develop a hypothesis and test whether or not the hypothesis can be proven false.

Five Step Hypothesis Testing

There are different steps that can be used to test hypothesis. These are step one, get an idea or a hunch by specifying a null hypothesis and an alternative hypothesis; step two, formulate a testable hypothesis by determining a level of significance; step three, design the experiment by deciding which test to use and test statistic; step four, set up a decision rule; and step five, collect some data by using samples obtained to calculate the...