10.10 Hypothesis testing of two means and two proportions: lab i

Hypothesis Testing Lab -Two Samples

Name:

Student learning outcomes:

* The student will select the appropriate distributions to use in each case.

* The student will conduct hypothesis tests and interpret the results.

House prices

Conduct a hypothesis test to determine if the proportion of homes in San Diego that cost more than $350,000 is different from the proportion of homes in Los Angeles that cost more than $350,000. Using either the newspaper’s housing section or a website, randomly choose 40 house prices from each city. Be sure to include a variety of areas. Choosing only homes in La Jolla will greatly bias your data. (α = 0.03)

1. H _o = H _a =

2. Summarize your sample statistics:

San Diego: x = n = Los Angeles: x = n =

3. The distribution to use for the test is:

4. Using Minitab, draw a graph and label it appropriately. Shade the actual level of significance. Include the graph with this lab.

5. What is the formula for calculating the test statistic?

6. Calculate the test statistic and the p-value using Mintab, and record your values here and attach the session window to this lab.

Test statistic = p-value =

7. Do you reject or not reject the null hypothesis? Why (use a complete sentence?

8. Write a clear conclusion using a complete sentence.

Textbook prices

The data in Textbook.mtw shows both the new and used textbook price for a sample of books required for summer 2008 classes at Mesa College. Is it worthwhile to buy used textbooks? (α = 0.06)

1. H _o = H _a =

2. Summarize your sample statistics:

New: x = n = Used: x = n =

3. The distribution to use for the test is:

4. Using Minitab, draw a graph and label it appropriately. Shade the actual level of significance. Include the graph with this lab.

5. What is the formula for calculating the test statistic?

6. Calculate the test statistic and the p-value using Mintab, and record your values here:

Test statistic = p-value =

7. Do you reject or not reject the null hypothesis? Why (use a complete sentence?

8. Write a clear conclusion using a complete sentence.