Hypothesis TestingLaura is the Human Resources manager of a major company, MasterCard. MasterCard is opening up three new facilities and would like Laura to consider relocating to Arizona, California or Illinois. Laura got a team together to help figure out which location would be more efficient. The team has to do research on pay and cost of living expenses. Since transportation is a necessity in today's fast paced environment and a valuable factor to consider when relocating we decided this would be our first step is the hypothesis testing. "Hypothesis testing starts with a statement, or assumption, about a population parameter - such as the population mean. It is a procedure based on sample evidence and probability theory to determine whether the hypothesis is a reasonable statement" (Lind, Marchal, & Wathen, 2004, p 318).
First, the team had to research the gas prices at several gas stations within all three states.
Lind
NYW-confidence-interval
The scientific diagram with the computed confidenc...That took 10 random samples from each state and took the average. The team determined that the population mean will be $ 2.99. The team is going to see if there is a difference between the mean of $2.99 and the gas prices in Arizona. Next, the team will take the Arizona gas stations and pick 25 samples, at random, to determine the t value. Then the will take all the samples to determine the proper z value. The team will use the five step process below to determine the proper values. After completing the tests, the team will interpret the results, draw a conclusion and identify differences between the tests. (Lind et al., 2004, p 318)The first step in our test is stating the null. The null will be different for the t and the z test. For the "t" test it will be determined by using the...