Hypothesis Testing - Doc
Added on - 15 Oct 2020
Running Head:HYPOTHESIS TESTING 1Hypothesis TestingNapoleon WilsonSouth UniversityBUS7200 Statistic for Research Methods 1Week 2 ProjectDr. ListOct 5, 2020
HYPOTHESIS TESTING2There are two types of interest rates: 48 month fixed-rate and 48 month variable-rate auto loans.Set up the null and alternative hypotheses needed to determine whether the meanrates for 48-month fixed-rate and variable-rate auto loans differ.The considered null and alternative hypothesis.Null hypothesis: The mean rates for 48-month fixed rate variable-rate auto loansare equalAlternative hypothesis: The mean rates for 48-month fixed rate variable-rate autoloans are differentb)Identify the test you will apply to test the hypothesis. Justify your choice.t=3.7431Find the critical for (n-1)degree of freedom at% level of significance.Calculate the critical value for 11 degree of freedom at 10% level of significancet0= 1.7959(Using Excel (probability, deg_freedom))Here, probability=0.10, deg_freedom=11Ifreject the Null hypothesis.Here, 3.7431 > 1.7959 thus reject the Null hypothesis. The mean rates for 48-month fixedvariable-rate auto loans are different.Calculate the critical value for 11 degree of freedom at 5% level of significancet0=2.201 (Using Excel (probability, deg_freedom))Here, probability=0.05, deg_freedom=11Ifreject the Null hypothesis.