Project Consumer

“Your manager has speculated the following:a. the average (mean) annual income was less than $50,000, b. the true population proportion of customers who live in an urban area exceeds 40%, c. the average (mean) number of years lived in the current home is less than 13 years, d. the average (mean) credit balance for suburban customers is more than $4300. 1. Using the sample data, perform the hypothesis test for each of the above situations in order to see if there is evidence to support your manager’s belief in each case a.-d. In each case use the Seven Elements of a Test of Hypothesis, in Section 6.2 of your text book with α = .05, and explain your conclusion in simple terms. Also be sure to compute the p-value and interpret. 2. Follow this up with computing 95% confidence intervals for each of the variables described in a.-d., and again interpreting these intervals. 3. Write a report to your manager about the results, distilling down the results in a way that would be understandable to someone who does not know statistics. Clear explanations and interpretations are critical

2

>Sheet

1

00)

2 12

5

4

00

Suburban

5

Rural 31 2 4

Urban

2 9

Rural

1

31

Urban 40 2 7

Suburban

4 10

Urban 51 3

0

Urban

3 11

Urban 48 4 16

Rural 27 1 19

Rural 33 2 12

Urban

3 12

4

Suburban

4

Urban 55 6

12

Urban 21 2

Rural 44 1 7

95

Urban 37 5 5

71

Suburban

6 13

8

Urban 21 3 16

Suburban 55 7 15

Rural 42 2 19

Urban 41 7 18

Suburban

6 14

Rural 30 1 14

Urban 48 2 8

Urban

5 5

86

Suburban 67 4 13

Rural 50 2 11

Urban 67 5 1

Urban 55 6 10

Urban

2 11

Urban 62 3 2

Urban 64 2 6

Suburban

3 18

Urban 29 4 4 3890
Suburban

2 18

Rural 35 1 11

Urban 39 4 15

Suburban 54 3 9

Suburban 23 6 18

Rural 27 2 1

Urban

7

03

Suburban

2 14

Rural 30 2 14

Rural 22 4 16

Suburban 46 5 13

Suburban 66 4 20

Location	Income ($		10	Size	Years	Credit Balance($)
																					Urban								5											4								3				12		40		1						6
												Rural			30		31		9
														Suburban	32	1					7		51
	50					14	47	42
		1	8	64
			55	4070
	37		20			27
	33		48
	66	4764
	16	4				11
25	4208
42		19
2477
2514
65	4		21
63				13	4965
		15		44
		18	2448
	29
	41
	62	5		67
36	23
5301
3020
4828
	54	5573
2583
3866
34		35
5037
3605
5345
5370
52		3890
4705
4157
	22	3899
	39	2972
3121
4183
3730
4127
2921
26	17		46
61	4273
3067
3074
4820
5149

Sheet2

Sheet3