Hypothesis Testing

One-Sample Test of Hypothesis Analysis

Clarence Terry II

BU-3023 Business Statistics

October 1, 2013

Professor Choi

A statistic is a measure computed from a sample that has been selected from a population. The value of the statistic will depend on which sample is selected. “The study of statistics is the branch of mathematics that transforms numbers into useful information for decision makers (Advanced Business Statistics 1).” Statistics are useful because they inform a person about the risks that come along with making a business decision as well as allow a person to reduce and understand the variation in the decision-making process. As we take an even further look into statistics, I would like to focus solely on business statistics. In the business industry, statistics has several specific uses. Business statistics is used to summarize data, draw conclusions from the data, make a trustworthy forecast related to business activities, and overall improve the business’s processes. When using statistical methods to solve these tasks, a person is using either descriptive statistics or inferential statistics. Descriptive statistics are the method that helps in collecting, summarizing, presenting, and analyzing a set of data while inferential statistics are the methods that use collected data from a small group to draw conclusions in regards to a larger group.

When discussing statistics, it is important to be familiar with the terms associated with it. In order to identify and become familiar with the fundamental concepts of the subject of statistics, we must be aware of the following seven terms: variable, operational definition, data, parameter, sample, population, and statistic. “A variable is a characteristic of an item or individual. An operational definition is universally accepted meanings that are clear to all associated with an analysis. Data are the different values associated with a variable. A parameter is a summary measure that is computed to...