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Math 533 Part B

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Keller graduate school of management | Department Store part B | Week 6 project for AJ Davis |

Information from the project for AJ Davis department store. Attached in this report is all information related to the information listed from Excel. |

Results from Minitab findings
The mean income was less than $50,000. The Null Hypothesis: which states the average annual income was greater than or equal to 50. The number of trials (n) is larger than 30 use ztest to check the hypothesis. With the Critical Value and decision rule: Reject H0 if Z –value is -1.645. By using the z-test the one sample z: results are as follows: z -3.02 p .001 mean 43.74. The p value .999 is larger than .05, so I would not reject the null hypothesis. The p value shows the probability of rejecting null hypothesis. The confidence level of .05 shows there is enough data to support the claim that the average annual income was less than $50,000. The confidence level at 99.5% is 38.41 and since 50 are above the 99.5% confidence level shows support for the claim that the mean income is less than $50,000.
The proportion of customers who live in urban areas exceeds 40%. For this 21 out of the 50 people in the data live in an urban area. This equates to .42 so my point estimate would be .42 or 42%. The Ho: p=.40 vs. Ha: p >.40. z= .29. The reject area is z> 1.645; since .29 is less than 1.645 I would not reject Ho. The p value is .386. By not rejecting this is saying there is insufficient data to conclude the true population of customers who live in urban areas is greater than 40%. This is with 99.5%CI The mean years lived in the current home is < than 13 years. Ho u= 13 H1 u 43. T= 1.78 since this is larger than 1.645 I would reject and say there is sufficient data to conclude the true mean balance for suburban customers is more than $4300.00. The p value is

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