MAT 240 SNHU Hypothesis Testing for Regional Real Estate Company Paper

Scenario

You have been hired by the Regional Real Estate Company to help them analyze real estate data. One of the company’s Pacific region salespeople just returned to the office with a newly designed advertisement. The average cost per square foot of home sales based on this advertisement is $280. The salesperson claims that the average cost per square foot in the Pacific region is less than $280. In other words, he claims that the newly designed advertisement would result in higher average cost per square foot in the Pacific Region. He wants you to make sure he can make that statement before approving the use of the advertisement. In order to test his claim, you will generate a random sample size of 750 using data for the Pacific region and use this data to perform a hypothesis test.

Prompt

Generate a sample of size 750 using data for the Pacific region. Then, design a hypothesis test and interpret the results using significance level α = .05. You will work with this sample in the assignment. Briefly describe how you generated your random sample.

Use the

House Listing Price by Region

document and the

National Summary Statistics and Graphs House Listing Price by Region

documents to help support your work on this assignment. You may also use the

Descriptive Statistics in Excel

and

Creating Histograms in Excel

tutorials for support.

Specifically, you must address the following rubric criteria, using the

Module Five Assignment Template

• Hypothesis Test Setup: Define your population parameter, including hypothesis statements, and specify the appropriate test.Define your population parameter.Write the null and alternative hypotheses. Note: Remember, the salesperson believes that his sales are higher.Specify the name of the test you will use.Identify whether it is a left-tailed, right-tailed, or two-tailed test.Identify your 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 your sample.Describe your sample by writing a sentence describing the shape, center, and spread of your sample.Determine whether the conditions to perform your 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.Calculate the sample mean and standard error.Determine the appropriate test statistic, then calculate the test statistic.Note: This calculation is (mean – target)/standard error. In this case, the mean is your regional mean (Pacific), and the target is 280.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 your 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 your test relates to the hypothesis and discuss the statistical significance.Explain in one paragraph how your test decision relates to your hypothesis and whether your conclusions are statistically significant.

You can use the following tutorial that is specifically about this assignment:

MAT-240 Module 5 Assignment

Hypothesis Testing for Regional Real Estate Company
1
[Note: To complete this template, replace the bracketed text with your own content. Remove this
note before you submit your outline.]
Hypothesis Testing for Regional Real Estate Company
[Your Name]
Southern New Hampshire University
Hypothesis Testing for Regional Real Estate Company
2
Introduction
[Include in this section a brief overview, including the purpose of this analysis.]
Introduction
[Briefly describe how you generated your random sample of size 750.]
Setup
[Define your population parameter.]
[Write the null and alternative hypotheses. Note: Remember, the salesperson believes that
his sales are higher.]
[Specify the name of the test you will use and identify whether it is a left-tailed, righttailed, or two-tailed test.]
Data Analysis Preparations
[Describe the sample.]
[Provide the descriptive statistics of the sample.]
[Provide a histogram of the sample.]
[Specify whether the assumptions or conditions to perform your identified test have been met.]
[Identify the appropriate test statistic, then calculate the test statistic and identify your
significance level.]
Calculations
[Calculate the p value using one of the following tests:
=T.DIST.RT([test statistic], [degree of freedom])
=T.DIST([test statistic], [degree of freedom])
=T.DIST.2T([test statistic], [degree of freedom])
Hypothesis Testing for Regional Real Estate Company
3
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 your sample size.]
[Use the normal curve graph as a reference to describe where the p value and test statistic would
be placed.]
Test Decision
[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
[Explain in one paragraph how your test decision relates to your hypothesis and whether
your conclusions are statistically significant.]