Essay Grade

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Use hypothesis testing to confirm your conclusion about a set of data based on a
given scenario, and write a 1–2 page report that explains your results, your
recommended actions, and why you can be statistically confident in your conclusion.
Note: The assessments in this course build upon each other, so you are strongly
encouraged to complete them in sequence.
Analysts often use managerial hypothesis testing to determine if an assumed change
has actually occurred.
By successfully completing this assessment, you will demonstrate your proficiency
in the following course competencies and assessment criteria:
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Competency 1: Evaluate the quality and fit of data for use in business analysis.
Determine the null hypothesis and alternative hypothesis for making decisions
regarding average customer spending.
Competency 3: Analyze business decision opportunities using basic inferential
statistics.
Compute the appropriate statistical test to determine acceptance or rejection of a
null hypothesis.
Compute the p-value to indicate acceptance or rejection of a null hypothesis
regarding average customer spending.
Competency 5: Apply data analysis to general business management planning and
decision making.
Compile findings into a management report with details for recommended actions.
Competency 6: Communicate in a manner that is professional and consistent with
expectations for members of the business professions.
Communicate in a manner that is professional and consistent with expectations for
members of the business professions.
Context
Often, a manager is faced with determining what difference there is, if any, in the
value of some attribute between two groups. For example, how do men and women
differ in the amount they spend on a product, such as a pair of shoes? With twosample hypothesis testing, means from two different samples are compared to each
other to determine if a difference is likely to exist in the populations from which the
two samples came. It is important to practice techniques used to evaluate these
types of practical managerial questions.
Questions to Consider
To deepen your understanding, you are encouraged to consider the question below
and discuss it with a fellow learner, a work associate, an interested friend, or a
member of the business community.
As the manager of Big Time Burgers you believe that customers that purchase
chocolate milkshakes also purchase French fries. If this is true, you could have
milkshake “discount days” where you reduce the price of the chocolate milkshake to
generate additional sales in French fries; an item that has a significantly higher
profit margin.
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How could you use hypothesis testing to confirm your assumption that customers
that buy milkshakes also buy French fries?
Resources
Required Resources
The following resource contains the data needed to complete the assessment.
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Mall of Elbonia Interview Results.
Suggested Resources
The resources provided here are optional. You may use other resources of your
choice to prepare for this assessment; However, you will need to ensure that they
are appropriate, credible, and valid. They provide helpful information about the
topics in this unit. The MBA-FP6018 – Data Analysis for Business Decisions Library
Guide can help direct your research. The Supplemental Resources and Research
Resources, both linked from the left navigation menu in your courseroom, provide
additional resources to help support you.
The following texts provide instruction in Statistics.
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Bowerman, B., O’Connell, R., & Murphree, E. (2014). Business statistics in practice
(7th ed.). New York, NY: McGraw Hill. Available from the bookstore
Read Chapter 9, “Hypothesis Testing,” in Business Statistics in Practice, pages 340–
373
The following resource is an Excel calculation tool that will assist you in completing
the assessment.
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Hypothesis Tester – Single Sample.
The following resource is a tutorial for using an Excel calculation tool that will assist
you in completing the assessment.
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Hypothesis Tester | Transcript.
Additional Resources for Further Exploration
The following text provides instruction for statistical analysis in Microsoft Excel.
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Salkind, N. J. (2016). Excel statistics: A quick guide (3rd ed.). Thousand Oaks, CA:
Sage. Available from the bookstore
The following text provides instruction for SAS one of the most commonly used
statistical analysis tools in business.
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Slaughter, S. J., & Delwiche, L. D. (2010). The little SAS book for Enterprise Guide 4.2.
Cary, NC: SAS Institute. Available from the bookstore
Statistics Tutorials
Capella University partners with Sophia Learning to provide tutorials and other
learning resources online. For this assessment, you are encouraged to study the
following Sophia tutorials:
This tutorial introduces and defines the T-Statistic and its relevance to variance and
distribution within data sets.
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Fitz (Producer). (n.d.). T-statistic [Video] | Transcript. Retrieved from
http://www.sophia.org/t-statistic/t-statistic–4-tutorial
This tutorial illustrates a hypothesis testing procedure for a mean.
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Daunis, M. (Producer). (n.d.). Hypothesis test – Mean [Video] | Transcript. Retrieved
from http://www.sophia.org/hypothesis-test-mean-tutorial
Additional Statistics Tutorials
This website offers resources that cover many topics in statistics, including
presentations that illustrate how to use software to implement statistical methods.
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StatisticsLectures.com (Producer). (n.d.). Independent and dependent
samples [Video] | Transcript. Retrieved from
http://www.statisticslectures.com/topics/independentdependentsamples/
StatisticsLectures.com (Producer). (n.d.). Null and alternative hypotheses [Video]
| Transcript. Retrieved from http://www.statisticslectures.com/topics/hypotheses/
StatisticsLectures.com (Producer). (n.d.). One sample z-test [Video]
| Transcript. Retrieved from
http://www.statisticslectures.com/topics/onesamplez/
StatisticsLectures.com (Producer). (n.d.). One sample t-test [Video]
| Transcript. Retrieved from http://www.statisticslectures.com/topics/onesamplet
Assessment Instructions
Use the Mall of Elbonia Interview Results file, linked in the Resources under the
Required Resources heading, and data analysis software to complete the scenario
for this assessment.
You may also use the Hypothesis Tester – Single Sample file to test your hypothesis;
refer to the Hypothesis Tester – An Introduction media piece (linked in the
Resources) to review the process for computing this equation.
Practical Application Scenario
In this scenario, you have just been hired away from your Macy’s linens department
buyer position by the Mall of Elbonia (MoE), as the new food court manager. Why?
Rumor had it you have just earned your MBA.
One week ago, the MoE conducted convenience interviews with customers in the
mall’s food court. One hundred interviews were gathered. The results are
summarized in the Mall of Elbonia Interview Results file. In this file, you will find the
customers listed in rows, with columns containing data on:
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The customer’s gender. (If you need this data for your computations in this
assessment, use the coding convention: 0 for female, 1 for male.)
How much time the customer spent in the mall.
How much money he or she spent on food.
The customer’s rating of the mall’s friendliness and attractiveness.
After you have applied the descriptive data measures, you find the mean to be
particularly telling. You believe that you can happily tell the food court owners that
the average amount mall customers spend on food during a visit has increased. You
realize this is a one-sample test of hypothesis situation. A 2011 study previously
found that customers spent an average of $18.75 per visit.
Directions
Use the data in the Mall of Elbonia Interview Results file and the process outlined
below to confirm that the average amount mall customers spend on food during a
visit to your mall has increased. Use an alpha of .05.
5.
Determine the null hypothesis via the appropriate math equation, and write a
brief explanation.
6. Determine the alternative hypothesis via the appropriate math equation, and write a
brief explanation.
7. Solve the equation to determine whether to accept or reject the null hypothesis.
8. Determine whether the p-value indicates acceptance or rejection of the null. Use
alpha = .05.
Next, address the following:
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Report the rejection or acceptance of the null, in terms of the scenario results.
Write a three-sentence paragraph that details:
Why you can be statistically confident that the average amount a food court’s
customer spends has increased, decreased, or remained the same.
What would happen if alpha was .01 or .10.
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Recommend actions to the food court owners based on your findings.
Additional Requirements
Compile your work and report in a 1–2 page Microsoft Word file:
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Paste in the tables you used to make your calculations.
Clearly title your tables, including each row and column.
Highlight the results of your data calculations within each table.
Mall of Elbonia Interview Results
Customer
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
Gender
1
0
0
1
1
0
1
1
1
0
1
1
1
0
0
0
0
1
0
1
1
0
0
1
1
0
0
1
1
1
0
1
0
0
0
1
1
0
1
1
1
1
1
1
Clothing
$65
$139
$186
$125
$193
$186
$60
$231
$83
$157
$185
$125
$174
$125
$110
$164
$192
$165
$123
$189
$115
$116
$188
$146
$184
$121
$169
$95
$135
$157
$163
$134
$179
$144
$180
$92
$154
$180
$168
$117
$193
$96
$118
$214
Food
$16
$17
$22
$24
$17
$20
$18
$18
$20
$20
$26
$18
$17
$26
$18
$18
$15
$28
$18
$19
$16
$27
$13
$24
$24
$19
$15
$16
$24
$26
$12
$19
$24
$21
$20
$15
$19
$26
$13
$25
$17
$24
$13
$28
Time in Mall
51
40
231
131
20
204
61
64
84
161
148
67
231
165
59
16
174
41
337
63
57
242
12
116
46
146
152
61
71
226
48
289
81
170
53
161
34
111
53
125
101
130
108
109
Friendliness
8
5
3
5
3
2
4
1
5
5
7
10
6
1
9
2
3
7
5
9
8
7
8
9
9
7
4
1
1
9
7
10
6
3
10
9
7
5
6
1
10
9
4
6
Attractiveness
9
8
1
8
3
1
3
5
7
5
6
9
4
5
5
3
1
1
4
10
9
8
6
7
7
8
4
1
9
10
10
9
5
5
5
9
8
7
5
1
8
8
1
9
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
1
1
1
0
0
1
1
0
0
0
1
0
0
1
1
1
0
1
1
1
1
0
0
0
0
0
1
0
0
1
1
1
0
0
1
1
1
0
0
0
0
1
1
1
0
0
0
$169
$113
$199
$64
$177
$149
$130
$186
$180
$93
$114
$195
$185
$81
$223
$164
$119
$165
$146
$87
$158
$187
$113
$159
$174
$169
$140
$126
$177
$124
$181
$124
$145
$186
$118
$141
$154
$161
$92
$183
$215
$104
$178
$155
$104
$171
$172
$18
$16
$26
$13
$23
$24
$15
$24
$17
$24
$15
$20
$21
$15
$29
$16
$17
$20
$19
$24
$20
$26
$12
$27
$18
$21
$17
$23
$18
$21
$17
$26
$13
$21
$24
$19
$16
$20
$26
$20
$15
$19
$21
$18
$19
$26
$17
141
185
95
136
45
102
81
205
26
237
229
39
125
318
64
124
127
89
98
145
124
118
161
42
39
210
242
170
76
149
161
24
77
239
87
20
90
52
97
42
222
167
36
87
213
74
235
2
7
10
5
8
6
9
5
1
1
9
9
5
5
1
2
8
7
3
6
8
7
8
3
2
6
2
1
9
8
7
7
6
3
9
2
1
5
2
10
8
2
8
8
6
10
8
1
9
9
2
4
5
7
8
4
3
8
10
3
9
3
3
7
8
7
8
10
6
2
1
2
1
6
9
8
9
7
8
8
1
4
2
9
4
7
8
9
1
7
7
7
8
1
92
0
93
1
94
0
95
0
96
0
97
0
98
1
99
0
100
0
End of worksheet
$88
$208
$98
$174
$149
$140
$170
$177
$79
$19
$22
$19
$21
$22
$23
$13
$27
$17
56
67
215
46
333
39
39
57
235
1
9
1
1
10
5
4
1
6
3
9
1
1
7
1
5
3
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Hypothesis Tester – Single Sample
Hypothesis Test for a Population Mean, Sigma Known
If the population standard deviation is known, we can directly calculate the
standard deviation of the sampling distribution (the standard error of the estimate),
and use the standardized normal distribution to get a z-multiple, using the Excel
function NORMSINV.
We can then calculate p for each of the three possible test conditions, and compare it to
each level of alpha to see whether the null hypothesis should be rejected.
Inputs:
Hypothesized population mean:
Population standard deviation (sigma):
Sample size (n):
Sample mean (x-bar):
295
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297.6

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